Competition for funds drives SBI to hike savings deposit rate by 30 bps

Balances of Rs 10 cr and above to earn 3% rate of interest Oct 15 onwards; 2.7% rate unchanged on deposits below Rs 10 cr

With the competition for attracting funds turning intense, State Bank of India has hiked the interest rates on saving bank deposits by 30 basis points to 3.0 per cent for balances of Rs 10 crore and above.

The interest rates for deposits below Rs 10 crore remain unchanged at 2.70 per cent. The revised rates are applicable from October 15 onwards, the country's largest bank said in a statement.

Senior SBI executives said while savings bank account have predominantly money from the retail sector -- household and individuals -- some institutions and government departments also maintain funds in such accounts.