About ten key lenders of the country have slashed interest rates on savings bank accounts. A fall in the rate of inflation, weak credit offtake and surplus money with banks on account of demonetisation are the primary reasons for these cuts. In fact, Bank of India said on Monday that it is also considering reducing the savings bank account rate and also the interest rate on deposits. “A cut on both the SB rate and interest on deposits are on the cards. Savings Bank account rate cut may not happen immediately but it is under consideration,” said BOI Executive Director R S Sankaranarayana, told Press Trust of India.
Here are the ten banks which have slashed their interest rates on savings bank accounts:
Dena Bank: On Monday, Dena Bank reduced the interest rate on savings bank account for balance up to Rs. 25 lakh to 3.50 per cent per annum from the existing rate of 4 per cent per annum. For deposits above Rs. 25 lakh, the interest rate would remain unchanged at 4 per cent per annum.
Union Bank of India: State-run Union Bank of India said on Friday that it has reduced savings bank interest rates by 0.5 per cent to 3.5 per cent on deposits up to Rs. 25 lakh. For deposits above Rs. 25 lakh, the rate has been left unchanged at 4 per cent per annum, the bank said in a statement.
Punjab National Bank: PNB reduced interest rates on fixed deposits of less than Rs. 1 crore by 15-40 basis points on select maturities. Interest rate on savings bank account for balance up to Rs. 50 lakh has been reduced to 3.50 percent per annum, PNB said in a statement.
State Bank of India (SBI): The country’s largest lender kick-started the rate-cutting spree on July 31 as it introduced a new two-tier savings account interest rate system, reducing interest rates for most of its depositors. On balances below Rs. 1 crore, SBI lowered the interest rate to 3.5 per cent from 4 per cent. On balances above Rs. 1 crore, it continued to offer a rate of 4 per cent.
Bank of Baroda: Bank of Baroda also adopted a two-tier savings bank interest rate from August 5, it said in a regulatory filing. The interest rate on savings bank balance of up to Rs. 50 lakh was reduced to 3.5 per cent from the current 4 per cent. However, for balance above Rs. 50 lakh, the bank retained the rate at 4 per cent.
Axis Bank: The private sector lender reduced interest rate on savings bank accounts by 0.5 per cent to 3.5 per cent for deposits up to Rs. 50 lakh. However, the bank will continue to pay 4 per cent interest on deposits of above Rs. 50 lakh.
Indian Bank: The PSU lender now offers interest rate of 4 per cent per annum on savings account with incremental balance of over Rs. 50 lakh and 3.50 per cent per annum for deposits up to Rs. 50 lakh.
Karnataka Bank: For daily balances of above Rs. 1 crore, the interest rate was revised to 5 per cent per annum, from the existing 4 per cent per annum, whereas for daily balances of Rs. 50 lakhs to Rs. 1 crore, the applicable interest rate is 4per cent per annum. Similarly for daily balance in the range of more than Rs. 1 lakh to Rs. 50 lakh, the interest rate is reduced to 3.5 per cent from the existing 4per cent and for balance below Rs. 1 lakh, the revised rate is 3 per cent from the existing 4 per cent.
Yes Bank: Yes Bank reduced the interest rate on savings bank accounts by 1 per cent to 5 per cent for deposits of less than Rs. 1 lakh. However, the bank will continue to pay 6 per cent interest on deposits of over Rs. 1 lakh and less than Rs. 1 crore. The bank has also slashed interest rate on savings accounts to 6.25 per cent from existing 6.5 per cent for deposits over Rs. 1 crore.
HDFC Bank: India’s No.2 lender by assets, also announced a cut in interest rate on savings account deposits. Customers maintaining an account balance below Rs. 50 lakh will now earn interest at the rate of 3.5 per cent per annum. Customers maintaining a savings bank account balance of Rs. 50 lakh and above will continue to earn interest at 4 per cent. The revised rates will be applicable to both resident and non-resident customers, HDFC Bank said.