Private sector lender HDFC Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 % on deposits up to ₹50 lakh.
The bank will howver continue to pay 4 % interest on deposits of above ₹50 lakh.
“Post revision, customers maintaining savings bank account balance of ₹ 50 lakh and above will continue to earn interest at 4 % per annum. Customers maintaining account balance of below ₹ 50 lakh will earn interest at 3.5 % per annum,” HDFC Bank has said in a regulatory filing.
The revised rates will be applicable to both resident and non—resident customers. The new interest rates will be effective from August 19, it added.
On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 % on balance of ₹ 1 crore and below.
Earlier this month, Axis Bank had also reduced interest rate on savings bank accounts by 50 basis points to 3.5 % for deposits up to ₹ 50 lakh.
Another PSU lender Bank of Baroda had cut the rate to 3.5 % on deposits of up to₹50 lakh. Karnataka Bank too has tweaked the interest rate on savings bank accounts.
