On 31st July, State Bank of India which is India’s largest bank announced a rate cut on savings account by 50 basis points. What this means is, it reduced the interest rate from 4% (which was not too high to begin with) to 3.5% per annum on an account balance of less than 1crore.
That is a total of 0.5% lesser growth for your money parked in your savings account.

Let’s look at some numbers to understand its full impact: