Top banks cut savings account rates after RBI rate cuts; SBI 2.5%, HDFC and ICICI now falls at 2.75%

Savings account holders will see low returns as major banks including State Bank of India (SBI), HDFC Bank and ICICI Bank, reduced their interest rates in June 2025 after the Reserve Bank (RBI) reduced the 50 basis point repo rate. Cumulative rate cut for this year is now 1%. Many private and public sector banks have moved into a uniform low rate structure, affecting deposits in the balance slab.SBI flats 2.5% of slash ratesAccording to the ET report, SBI, the country’s largest lender, has revised its savings account interest rate for all the balance effective on June 15, 2025 in an equal 2.5% per year. Earlier, the bank offered Rs 2.7% for the balance below Rs 10 crore and 3% for the balance of Rs 10 crore and more.HDFC Bank goes into 2.75% flatHDFC Bank has aligned its savings rates by a flat 2.75%, which is effective on June 10, 2025, which eliminates the previous difference. The bank first offered the balance below Rs 50 lakh and 2.75% for the balance of 3.25% and for the balance of Rs 50 lakh and more.ICICI bank follows with similar modificationICICI Bank revised its interest rate to implement from June 12, 2025 in an equal 2.75% per year. Earlier, the bank offered 2.75% on the balance below Rs 50 lakh and 3.25% on the balance.Other banks also modify savings ratesMany other banks have also updated their rates in response to RBI’s monetary policy move:

The rates come as amendment as banks adjust to align with the interest rate cycle that reduces deposit returns, which also reduces fixed deposits (FD) rates in the tenure.