With effect from October 25, 2011, savings bank deposit interest rate stands deregulated. However, each bank will have to offer a uniform interest rate on savings bank deposits of

With effect from October 25, 2011, savings bank deposit interest rate stands deregulated. Accordingly, banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:

(a) Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit.

(b) For savings bank deposits over Rs. 1 lakh, a bank may provide differential rates of interest, if it so chooses, subject to the condition that banks will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices.