If you think that RBI’s repo rate cut affects only loans, then this news is important for you. In the last 5 months, the Reserve Bank of India (RBI) has cut a total of 100 basis points i.e. 1% in three monetary policy meetings (MPC). Its direct impact is now visible on the interest rates of savings accounts. Banks are now paying less interest on deposits, which has affected the earnings of crores of small depositors.

Which are the major banks that have reduced savings account interest in June 2025

The country’s largest public and private banks have cut the interest rates of savings accounts in June 2025. State Bank of India (SBI), HDFC Bank and ICICI Bank have now started paying less interest to their customers than before. These banks have now fixed a uniform interest rate instead of different balance slabs, which has caused loss especially to those depositing large amounts.

Also read: Canara Bank offers one of the cheapest home loans – Check new home, consumer loan rates

SBI savings account interest rates

State Bank of India has implemented a uniform interest rate of 2.5% per annum on all its savings accounts from June 15, 2025. Earlier this rate was 2.7% on balance less than Rs 10 crore and 3% on Rs 10 crore or more. This change has reduced the return on savings of crores of customers.

HDFC Bank savings account interest rates

HDFC Bank has started paying a uniform 2.75% per annum interest on all savings accounts from June 10, 2025. Earlier, 2.75% interest was available on less than Rs 50 lakh and 3.25% interest was available on Rs 50 lakh or more. Now all customers will get the same rate, which has caused direct loss to high value account holders.

ICICI Bank savings account interest rates

ICICI Bank has also cut interest rates from June 12, 2025. Now the bank is offering 2.75% interest per annum on all savings accounts, whereas earlier 3.25% interest was available on amounts above Rs 50 lakh. 2.75% interest was already being offered on balances less than Rs50 lakh.

Also read: SBI cuts savings account, FD rates

Other banks that changed savings account interest rates

Bank of Baroda

Bank of Baroda has implemented new rates from June 12, 2025. Now savings accounts are getting interest ranging from 2.7% to 4.25%, which varies according to your deposit amount.

Federal Bank

Federal Bank has offered interest ranging from 2.5% to 6.25% on savings accounts from June 17, 2025. Higher interest can be obtained on depositing more amount.

IndusInd Bank

IndusInd Bank is now offering interest ranging from 3% to 5%, depending on your savings account balance. The new rates are effective from June 16, 2025.

RBL Bank

RBL Bank has implemented interest rates ranging from 3% to 6.75% on savings accounts from June 16, 2025. It is still giving much better returns than the rest of the big banks.

Canara Bank

In May 2025, several banks including public sector Canara Bank cut its rates for savings account holders. From May 19, 2025, Canara Bank’s savings account interest rates are between 2.70% and 4%, depending on account balance of customers.

Also read: Canara Bank revises rates on fixed deposits, savings account – Check new rates

Summing up…

While the benefit of RBI’s repo rate cut is available to loan borrowers in the form of cheaper EMI, the loss is borne by savings account holders in the form of lower interest. In such a situation, it is important that you consider investing your deposits in options with better returns, so that the real value of your savings remains intact against inflation.