ICICI Bank slashes interest rate on savings account by 25 bps

Savings bank accounts with deposits up to Rs 50 lakh will earn 3.25 per cent interest as against existing 3.5 per cent.

Private sector lender ICICI Bank on Wednesday cut interest rates on savings accounts by 25 basis points for deposits up to Rs 2 crore. The new rates will be effective from April 8, ICICI Bank said in a regulatory filing.

Savings bank accounts with deposits up to Rs 50 lakh will earn 3.25 per cent interest as against existing 3.5 per cent, it said. At the same time, it said, savings bank account with deposit over Rs 50 lakh but less than Rs 2 crore will fetch 3.75 per cent, from the current rate of 4 per cent.

The moderation in interest rate on savings bank account follows the rate reduction on both lending and term deposit side by a host of banks recently.