PNB slashed interest rate on savings bank accounts by 50 basis points to 3.5 per cent on deposits up to Rs 50 lakh.
Punjab National Bank (PNB) has also 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 per cent per annum, PNB said in a statement.
HDFC Bank became the fifth while PNB sixth lender after SBI to cut the interest rate on savings bank account. "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 the account balance of below Rs 50 lakh will earn interest at 3.5 per cent per annum," HDFC Bank said in a statement.
The new interest rates of both the banks will be effective from August 19, it added. HDFC Bank Cuts Interest Rate On Savings Account Deposits
On July 31, State Bank of India (SBI) slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 crore and below.
This triggered rate cut by various banks. Earlier this month, Axis Bank had also reduced the interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh.
Yesterday, Yes Bank reduced the interest rate on savings bank accounts by bringing down the return on accounts with balances of up to Rs 1 lakh to 5% from 6% earlier. The bank has maintained the 6% return that it offered customers with deposits between Rs 1 lakh and Rs 1 crore, while reducing the rate on deposits above Rs 1 crore to 5.5% from 6% earlier. YES Bank Cuts Savings a/c Interest Rate