1. Canara Bank cuts interest rate on savings bank accounts

Canara Bank cuts interest rate on savings bank accounts

Public lender Canara Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent on deposits of up to Rs 50 lakh.

By: | New Delhi | Published: September 1, 2017 4:27 PM
Canara Bank, Canara Bank saving accounts, Canara Bank interest rate, Canara Bank interest rate cut, Canara Bank saving bank account Canara Bank said customers maintaining savings bank balance up to Rs 50 lakh will get 3.5 per cent while those maintaining above Rs 50 lakh will continue to earn an interest of 4 per cent per annum. (PTI)

Public lender Canara Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent on deposits of up to Rs 50 lakh. However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh. “The bank has decided to revise the rate of interest on savings bank deposits with effect from today,” Canara Bank said in a regulatory filing.

Canara Bank said customers maintaining savings bank balance up to Rs 50 lakh will get 3.5 per cent while those maintaining above Rs 50 lakh will continue to earn an interest of 4 per cent per annum. On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 crore and below. Other lenders, including private ones such as HDFC Bank and Axis bank, have followed suit.

Earlier this month, Axis Bank had reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh. Another PSU lender, Bank of Baroda and Bank of India also slashed the savings account interest rate to 3.5 per cent on deposits of up to Rs 50 lakh. Karnataka Bank too has tweaked the rate on savings bank accounts.

  1. A
    Apte
    Sep 6, 2017 at 5:27 pm
    During the last twelve months or so, one observes that there has seen a continuous decrease in interest rates on all types of financial savings (that is Fixed Deposits with banks, National Saving Schemes, etc.). The latest cut is on interest on widely used savings accounts. Question is whether our public sector banks will be healthier after cut in interest rates on all kinds of deposits and a straight answer is that in the short term, yes. But in the long term a fairly large section of depositors- senior citizens mainly- whose main source of income is interest on bank deposits and saving schemes, will suffer heavily. In fact my fear is that over course of time some of them will have to use capital to survive. Naturally their faith in the Union government will be eroded. But who cares for them anyway?
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