SBI on Wednesday, 11 March, cut interest on savings bank accounts to 3 percent and also waived minimum balance requirement, as it set the trend of lowering interest rates in the banking sector.The country's largest lender has 44.51 crore savings bank (SB) accounts.More banks are likely to follow to the market leader in slashing interest rate on SB accounts and waiving minimum balance requirements.Earlier in the day, State Bank of India (SBI) reduced its fixed deposit rates and marginal cost of funds-based lending rates (MCLR) for various tenors.Keeping in mind the 'Customers First' approach, the bank said it has also waived SMS charges, which will bring significant relief to all the customers.“Bank has also rationalised interest rate on SB Account to a flat 3 % pa for all buckets,” it said in a statement. Currently, the interest rate on SB accounts is 3.25 percent for deposits up to Rs 1 lakh in SB accounts, and 3 percent for deposits above Rs 1 lakh.Plan in Place, Team Working On It: SBI Chief on Yes Bank CrisisSBI said it has decided to waive maintenance of Average Monthly Balance (AMB) for all SB accounts.“The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts,” it said. Currently, SBI customers need to maintain AMB of Rs 3,000, Rs 2,000 and Rs 1,000 in metro, semi urban and rural areas, respectively.The bank used to levy a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of AMB.SBI had introduced penalty on breach of minimum balance in SB accounts in April 2017 after 2012. However, later in October it slashed the penalty amount.Making it the second reduction in as many months, the public sector bank reduced interest rates for retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for a few tenors.Fixed deposits (FDs) maturing between 7 days to 45 days will offer an interest rate of 4 per cent as against 4.50 percent earlier.Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points.One-year to less than two-year tenor FD will earn an interest rate of 5.90 per cent against 6 per cent earlier.FD for similar tenor will fetch an interest rate of 6.40 per cent instead of 6.50 per cent for senior citizens. The bank has also reduced interest rates on bulk term deposits (Rs 2 crore and above) by 15 basis points for 180 days and above tenors.FD rates in the bulk category for tenor of one-year and above will earn 4.60 per cent instead of 4.75 per cent. In February, the bank had slashed term deposits rates by 10-50 basis points in the retail segment and 25-50 basis points in the bulk segment.Further, the one-year MCLR has been reduced by 10 basis points to 7.75 per cent from 7.85 percent earlier, the bank said.This is 10th consecutive cut in MCLR by the bank in the current fiscal.Private sector lender ICICI Bank on its website said the savings account interest rate is 3.5 per cent for end of day account balance of below Rs 50 lakh, and 4 per cent for balance of Rs 50 lakh and above.Several private sector lenders have minimum balance requirement of at least Rs 10,000.‘SBI Rescue Plan is Bizarre’: P Chidambaram on Yes Bank Fiasco We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated. The Quint is now available on Telegram & WhatsApp too, Click here to join.