New Delhi: The State Bank of India has slashed interest on savings account deposits by half a percent to three and a half per cent on balance up to 1 crore rupees. For saving deposits balance above 1 crore, the rate of interest has been retained at 4 percent per annum.

The bank is introducing two-tier saving bank interest rate with effect from today itself. The largest public sector bank of the country said, revision of saving bank rate will enable the bank to maintain marginal cost of fund based lending rate at existing rates.