Bank of Baroda cuts interest on savings accounts by 50 bps

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New Delhi | Published: August 4, 2017 11:18:36 PM

Within days of SBI slashing interest rate on savings bank account, another PSU bank -- Bank of Baroda -- has followed suit, cutting it to 3.5 per cent on deposits of up to Rs 50 lakh.

Bank of Baroda, SBI, State Bank of India, interest on savings, interest on savings accounts, saving accounts, Bank of Baroda cuts interest, 2-tier savings bank, savings bank interest rate, interest rate, savings bank balance?We wish to inform you that it has been decided to introduce a 2-tier savings bank interest rate (from) August 5?,? the bank said in a regulatory filing. (Image: Reuters)

Within days of SBI slashing interest rate on savings bank account, another PSU bank — Bank of Baroda — has followed suit, cutting it to 3.5 per cent on deposits of up to Rs 50 lakh. “We wish to inform you that it has been decided to introduce a 2-tier savings bank interest rate (from) August 5…,” the bank said in a regulatory filing. Effective tomorrow, the interest rate on savings bank balance of up to Rs 50 lakh has been reduced to 3.5 per cent from the current annual 4 per cent. However, for balance above of Rs 50 lakh, the bank has retained the rate at 4 per cent.

On July 31, the country’s largest lender State Bank of India had slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 crore and below. However, SBI continues to offer 4 per cent interest on savings account balance of Rs 1 crore and above. More banks are likely to follow suit.

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