Your Saving Bank Account will earn an interest of 4.0% pa wef May 3, 2011.

The Reserve Bank of India (RBI) on Monday raised the repo (rate at which it lends to banks) and the reverse repo (rate at which it borrows) rates by 50 basis points to 7.25 per cent and 6.25 per cent.

Savings bank interest rate has also been increased to 4 per cent from 3.5 per cent now. The RBI has maintained cash reserve ratio at 6 per cent.

As per RBI circular RBI/2010-11/507 DBOD.Dir.B.C. 90/13.03.00/2010-11 dated 3rd May 2011, interest rate on saving account has been increased by 0.5 percentage point. Your Savings account will earn an interest of 4.0 per cent per annum effective May 3, 2011.