Public sector lender Bank of India has lowered the interest rates on savings bank account. The interest rates have been lowered by 50 basis points and now stand at 3.5%. This is applicable for deposits up to Rs.50 lakh. However, the bank will offer 4% interest for deposits, which are above Rs.50 lakh.
The bank has introduced a 2-tier savings rate system with immediate effect. Bank of India has stated that customers who maintain their savings account balances up to Rs.50 lakh and above Rs.50 lakh will receive 3.5% and 4% interest per annum respectively. This decision comes after the State Bank of India reduced interest rates for savings accounts on the 31st of July, 2017 by 50 basis points. Interest rates are now 3.5% for deposits up to Rs.1 crore at SBI while other lenders like Axis Bank and HDFC have also lowered their interest rates.
Axis Bank has cut interest rates on savings bank accounts to 3.5% (50 basis points) for deposits up to Rs.50 lakh. Bank of Baroda has reduced rates to 3.5% for deposits up to Rs.50 lakh while Karnataka Bank has also changed its savings bank account rates.