Central Bank, Dena Bank cut savings rates

August 22, 2017 06:46 IST

Central Bank of India, Dena Bank, savings rates, ICICI bank, Union Bank

Dena Bank has reduced the rate on accounts with balances of up to `25 lakh. (Reuters)

Central Bank of India and Dena Bank on Monday reduced interest rates on savings accounts. While both banks reduced the rate by 50 basis points (bps) to 3.5% per annum, the cuts apply to different buckets. At Central Bank, the cut will apply to savings accounts with balances of up to `50 lakh. Accounts with higher balances will continue to earn 4%. Dena Bank has reduced the rate on accounts with balances of up to `25 lakh. For balances of above `25 lakh, the rate remains unchanged at 4%. Most major banks recently dropped savings rates to 3.5%, following SBI’s decision to do so for SAs with balances of up to `1 crore. The last two lenders to drop rates were ICICI Bank and Union Bank. ICICI now pays 3.5% on deposits up to `50 lakh and 4% on savings accounts with higher balances. Union Bank pays 3.5% on SAs with balances of up to `25 lakh.

This article was first uploaded on August twenty-two, twenty seventeen, at forty-six minutes past six in the morning.