RBL Bank Cuts Savings Account Interest Rates On Large Balances

RBL Bank has reduced interest rates on savings account deposits, becoming one of the latest private lenders to trim returns on higher balances. The move affects a specific deposit slab, while most retail customers remain untouched.

What Has Changed In RBL Bank Savings Rates

The Mumbai-based private sector lender has announced a 50 basis point reduction in savings account interest rates for balances between ₹25 lakh and ₹3 crore. With this revision, the maximum savings account interest rate has been lowered to 6%, from 6.5% earlier.

According to details available on the bank’s website, the revised rates will be effective from January 15.

RBL Bank has clarified that interest rates for balances below ₹25 lakh and above ₹3 crore will remain unchanged, limiting the impact of the cut to a defined segment of customers.

Why Banks Are Lowering Savings Account Rates

Savings account interest rates are variable and can be adjusted based on liquidity conditions, deposit growth, and overall funding requirements. In recent months, several banks have reviewed their deposit strategies as competitive pressures ease.

RBL Bank’s decision follows a similar move by IDFC First Bank, which earlier this month reduced savings account interest rates across multiple balance slabs by up to 200 basis points. These changes suggest that banks are increasingly focusing on optimising deposit costs while maintaining adequate liquidity.

What This Means For Depositors

Customers maintaining balances between ₹25 lakh and ₹3 crore will now earn lower interest on their savings with RBL Bank. However, retail customers with balances under ₹25 lakh will not be impacted by this change.

For high-balance account holders, the rate cut may prompt a reassessment of fund allocation. Some depositors may choose to move surplus funds to fixed deposits or other investment options that offer higher returns, depending on their liquidity needs and risk appetite.

RBL Bank Share Price Performance

Despite the announcement of the rate cut, RBL Bank shares were trading around 1.3% higher at ₹309.65. The stock is currently trading close to its 52-week high of ₹332.

Over the past year, RBL Bank’s share price has delivered strong performance, rising by about 101%, reflecting improved investor confidence and a broader recovery in banking stocks.

Read more: PIB Fact Check: Will Your SBI YONO App Be Blocked If Aadhaar Is Not Updated?

Conclusion

RBL Bank’s savings account rate cut highlights a cautious approach towards managing large deposits rather than retail savings. While high-value customers may see a reduction in interest income, the majority of depositors remain unaffected. With multiple banks adjusting savings rates, customers should stay informed and regularly review their savings and investment strategies. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.