All most all popular lenders of the country have slashed interest rates on savings bank accounts in August.
State Bank of India (SBI) started the trend on July 31, and Bank of Baroda, Punjab National Bank, HDFC Bank, Axis Bank, YES Bank, Union Bank and ICICI Bank and many more have also cut to match competition. But, the baskets are different for different banks.
Reduction in the inflation rate, weak credit off take and surplus money with banks on account of demonetization are the primary reasons for these cuts.
Here are the ten banks which have slashed their interest rates on savings bank accounts:
1. State Bank of India (SBI)
The country's largest lender SBI started the rate-cutting trend on July 31. 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.
2. HDFC Bank
The private sector lender HDFC bank cut interest rates on savings account by 0.5 percent to 3.5 percent from 4 per cent for deposits below Rs 50 lakh. 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.
3. ICICI Bank
ICICI Bank the country's largest private sector lender reduced their savings bank rates by 50 basis points to 3.5% on deposits below Rs 50 lakh. The interest rate on savings bank accounts with deposits of Rs 50 lakh and above remains unchanged at 4%. How To Update Mobile Number With ICICI Account Through ATM?
4. Punjab National Bank
PNB reduced interest rates on fixed deposits of less than Rs 1 crore by 15-40 basis points on select maturities. The interest rate on savings bank account for balance up to Rs 50 lakh has been reduced to 3.50 percent per annum.
5. Axis Bank
Private sector lender Axis Bank has reduced the interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh. However, the bank will continue to pay four per cent interest on deposits of above Rs 50 lakh.
6. Dena Bank
Dena Bank reduced the interest rate on savings bank accounts 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.
7. Union Bank Of India
State-run Union Bank of India it has reduced savings bank interest rates by 0.5 per cent to 3.5 per cent on deposits up to Rs 25 lakh. The cut in savings rate would be applicable for deposits up to Rs 25 lakh. For deposits above Rs 25 lakh, the rates continue to remain at four per cent.
8. Bank of Baroda
The PSU bank Bank of Baroda cut 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. Bank of Baroda also adopted a two-tier savings bank interest rate from August 5. For balance above Rs 50 lakh, the bank retained the rate at 4 per cent.
9. Bank Of India
State-run Bank of India (BoI) has reduced the interest rate on savings bank accounts by 50 basis points to 3.5% on deposits of up to Rs 50 lakh. The bank will continue to pay 4% interest on deposits of above Rs50 lakh.
10. 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. 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.