A day after second largest private sector lender in the country, HDFC Bank cuts its savings bank interest rate, another private sector lender, this time ICICI Bank has cut its rate too. The bank announced today that it has slashed its interest rate by 50 basis points to 3.5 per cent on deposits below Rs 50 lakh. However, it has also indicated that the rate on deposits of Rs 50 lakh and above will remain unchanged at 4 per cent. The interest rates that have been revised will come into effect from Saturday itself.
Not just HDFC Bank and ICICI Bank, state run lender State Bank of India (SBI) on July 31 cut its interest rate on savings account deposits by a similar 50 basis points to 3.5 per cent on balance of Rs 1 crore and under. Others who had announced this step include Bank of Baroda, Punjab National Bank and Axis Bank.
HDFC Bank had become the fifth lender after SBI to cut interest rate on savings bank account, says PTI. “Post revision, customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest at 4 per cent per annum. Customers maintaining account balance of below Rs 50 lakh will earn interest at 3.5 per cent per annum,” HDFC Bank said in a statement. The revised rates will be effective from August 19, HDFC Bank had said.
Karnataka Bank too has tweaked the interest rate on savings bank accounts, reveals PTI. Yes Bank had also reduced the interest rate on savings bank accounts by 1 per cent to 5 per cent for deposits of less than Rs 1 lakh.