SBI, HDFC, ICICI Slash Savings Account Interest Rates After RBI Repo Cut — What Customers Need to Know

In a significant move impacting millions of customers, leading Indian banks—State Bank of India (SBI), HDFC Bank, and ICICI Bank—have revised their savings account interest rates downward. The development follows the Reserve Bank of India’s (RBI) recent 50 basis points cut in the repo rate during its June 2025 monetary policy review.

With the repo rate now lower, banks have passed on the impact by reducing interest payouts on savings deposits—a trend that will directly affect depositors, particularly those with large balances. It is now essential for customers to review their bank’s new rates and consider adjusting their savings and investment strategies accordingly.

Here’s a detailed look at the revised interest rates from key banks:

SBI: Uniform 2.5% Interest Across Accounts

India’s largest public sector bank, State Bank of India (SBI), has streamlined its savings account rates.

• Effective from June 15, 2025, SBI now offers a flat 2.5% per annum interest rate on all savings accounts.

• Previously, smaller accounts (below ₹10 crore) earned 2.7%, while larger accounts (₹10 crore and above) earned 3% annually.

• Now, the same rate applies to all balances.

HDFC Bank: One Flat Rate at 2.75%

HDFC Bank, India’s largest private sector lender, has revised its savings account interest structure:

• From June 10, 2025, all HDFC savings accounts earn 2.75% per annum, regardless of the account balance.

• Earlier, balances below ₹50 lakh earned 2.75%, and balances above ₹50 lakh earned 3.25%.

ICICI Bank: Interest Now Capped at 2.75%

ICICI Bank has also updated its savings interest rates:

• From June 12, 2025, a flat 2.75% annual interest will apply across all savings account balances.

• Prior to this, balances below ₹50 lakh earned 2.75%, while larger balances attracted 3.25% interest.

Bank of Baroda: Up to 4.25% Interest

Bank of Baroda now offers savings account interest ranging from 2.7% to 4.25%, depending on the deposit size.

• These revised rates are applicable from June 12, 2025.

Federal Bank: Rates as High as 6.25%

Federal Bank has announced new interest rates between 2.5% and 6.25%, linked to account balances.

• The new rates are effective from June 17, 2025.

IndusInd Bank: Tiered Rates Up to 5%

IndusInd Bank has moved to a slab-based rate structure, offering between 3% and 5% interest on savings accounts.

• The rates vary based on balance and are applicable from June 16, 2025.

What It Means for Bank Customers

For customers—especially those with high savings account balances—these rate changes mean lower interest income on deposits. As savings account returns shrink, individuals may need to reassess their financial plans, diversify into other investment avenues, or explore higher-interest banking products.

Experts advise depositors to stay updated on their bank’s interest rates and make informed decisions to maximize returns while ensuring liquidity.

Author Profile

Kuldeep Singh Chundawat

My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.

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