Leading private and public sector lenders have been lowering interest rates on savings bank accounts and this is being attributed to lower inflation and surplus money that is lying with banks post demonetization. In this scenario, here are the top lenders who have reduced the interest rates on savings accounts-
- SBI (State Bank of India) – SBI, India’s biggest lender, started the flurry of rate cuts on savings accounts on the 31st of July, 2017. SBI introduced a new savings account interest rate model over two-tiers, lowering interest rates for most depositors who possess balances lower than Rs.1 crore. Interest rates have been lowered to 3.5% from 4% in this case while it continues to offer 4% as interest rates on balances exceeding Rs.1 crore.
- Bank of Baroda- Bank of Baroda also came out with a two-tier system for interest rates from the 5th of August, 2017. The interest rates on savings balances up to Rs.50 lakh came down to 3.5% from 4% while balances above Rs.50 lakh will continue to earn 4% in terms of interest.
- Indian Bank- The Indian Bank offers interest rates of 4% per annum on savings accounts with balance exceeding Rs.50 lakh and 3.5% per annum on deposits up to Rs.50 lakh.
- Axis Bank- Axis Bank has lowered interest rates to 3.5% for savings bank account deposits up to Rs.50 lakh. For deposits above Rs.50 lakh, 4% interest will be paid.
- Karnataka Bank- For daily balance between more than Rs.1 lakh and Rs.50 lakh, interest rate has come down to 3.5% from 4% earlier. For balances lower than Rs. 1 lakh, the rate of interest is 3% from 4% previously. For daily balances above Rs.1 crore, interest rate has been revised to 5% per annum from 4% while for daily balances between Rs.50 lakh and Rs.1 crore, the interest rate is 4% per annum.
- HDFC Bank- HDFC Bank has also announced a lowering of interest rates on savings account deposits. Balances below Rs.50 lakh will earn 3.5% per annum in terms of interest while customers with deposits above Rs.50 lakh will continue earning 4% interest. The revised rates will apply for both non-resident and resident customers according to HDFC Bank. The new interest rates will come into effect from the 19th of August, 2017.
- Yes Bank- Yes Bank has also lowered interest rates on savings bank accounts to 5% for deposits lower than Rs.1 lakh from 6% earlier. However, Yes Bank will continue paying 6% as interest on deposits above Rs.1 lakh and lower than Rs.1 crore. The bank has also lowered interest rates to 6.25% for deposits above Rs.1 crore from 6.5% previously.