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RBL Bank Slashes Savings Account Rates By 25 Bps Effective 1st October; How Much Maximum Return You Can Get?
RBL Bank, a public sector lender, slashed the interest rates on savings accounts by 25 basis points. The bank's official website states that the new interest rates will take effect on October 1, 2024. Interest rates have been reduced from 3.75% to 3.50% on balance slabs up to Rs 1 lakh as a result of RBL Bank's surprise action. The interest rates on the remaining daily savings account balance slab, which spans from more than Rs 1 lakh to more than Rs 400 crore, have been kept unchanged by the bank.
RBL Bank Savings Account Rates
On a daily savings account balance of upto Rs 1 lakh, the bank is promising an interest rate of 3.50% and on a balance slab of Rs 1 lakh upto Rs 10 lakh, RBL Bank is offering an interest rate of 5.50%. RBL Bank is offering an interest rate of 6.00% on above Rs 10 lakh upto Rs 25 lakh balance in a savings account and 7.50% on a balance slab of above Rs 25 lakh to Rs 3 Cr. A daily savings account balance of Rs 3 Crore upto Rs 7.5 Crore will fetch an interest rate of 6.50% and those accounts with Rs 7.5 Crore to Rs 50 Crore balance will fetch an interest rate of 6.25%.
For savings accounts with balances over Rs 50 crore and up to Rs 75 crore, an interest rate of 5.25% will be offered; for savings accounts with balances above Rs 75 crore and up to Rs 125 crore, an interest rate of 7.75 will be offered. Interest rates of 6.00% and 4.00%, respectively, are being offered by RBL Bank on savings account balances above Rs 125 Crore and Rs 200 Crore, and Rs 400 Crore and above, respectively. On a daily balance slab of above Rs 400 Crore in a savings account, the bank will pay an interest rate of 6.75%.
| Daily balance | Rate of Interest (p.a.) Effective till September 30, 2024 | Rate of Interest (p.a.) Effective from October 01, 2024 |
|---|---|---|
| Upto INR 1 lakh | 3.75% | 3.50% |
| Above INR 1 lakh upto INR 10 lakh* | 5.50% | 5.50% |
| Above INR 10 lakh upto INR 25 lakh* | 6.00% | 6.00% |
| Above INR 25 lakh and upto INR 2 Crore* | 7.50% | 7.50% |
| Above INR 2 Crore and upto INR 3 Crore* | 7.50% | 7.50% |
| Above INR 3 Crore upto INR 7.5 Crore* | 6.50% | 6.50% |
| Above INR 7.5 Crore upto INR 25 Crore* | 6.25% | 6.25% |
| Above INR 25 Crore upto INR 50 Crore* | 6.25% | 6.25% |
| Above INR 50 Crore upto INR 75 Crore* | 5.25% | 5.25% |
| Above INR 75 Crore upto INR 100 Crore* | 7.75% | 7.75% |
| Above INR 100 Crore upto INR 125 Crore* | 7.75% | 7.75% |
| Above INR 125 Crore upto INR 200 Crore* | 6.00% | 6.00% |
| Above INR 200 Crore upto INR 400 Crore* | 4.00% | 4.00% |
| Above INR 400 Crore* | 6.75% | 6.75% |
Source: Bank Website
Every year on June 30, September 30, December 31, and March 31, savings bank interest calculated on a daily product basis will be paid out at quarterly intervals.
By the end of FY2026, RBL aims to have a return on assets (RoA) of 1.5% to 1.5%. Both the total deposit base and the percentage of retail deposits held by the bank have been steadily rising. However, the reliance on bulk deposits is still somewhat significant, which results in higher funding costs than the average for private sector banks (PVBs) and a higher level of depositor concentration. As of June 30, 2024, the total deposit base has grown by 18.4% YoY to Rs. 1.01 lakh crore, demonstrating the robust pace of deposit accretion. A strong rise in total advances reached Rs. 0.87 lakh crore as of June 30, 2024, representing an 18.6% YoY growth also bolstered by the expansion in deposits. In spite of the banking system's tight liquidity conditions, this helped the bank maintain a stable credit-to-deposit ratio of 85.5% as of June 30, 2024.
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