Yes Bank revises savings bank account interest rate

Paterniano Del Favero
Agosto 17, 2017

HDFC Bank has cut the interest rate by 50 basis points (1/2 a per cent) to 3.5 percent on savings bank deposits for balances upto Rs 50 lakh.

However, the bank will continue to pay 6 per cent interest on deposits of over Rs 1 lakh and less than Rs 1 crore. As per revised rates, 5% interest will be given for savings balance of less than Rs 1 lakh as against the previous rate of 6% per annum and 6.25% interest will be given for savings balance of Rs 1 crore and above as against the previous rate of 6.5% per annum.

HDFC Bank: One of the biggest lenders in the country, HDFC slashed rates for savings bank account balance below Rs 50 lakh to 3.5% per year.

Banks in the country are on a spree to slash savings interest rates.

State Bank of India was first to slash interest rate, followed by other public and private lenders. Deposits below Rs 1 crore would attract 3.5 per cent interest rate, while deposits above Rs 1 crore would attract 4 per cent interest.

Another PSU lender Bank of Baroda had cut the rate to 3.5% on deposits of up to Rs50 lakh. Karnataka Bank too lowered interest rate on savings bank accounts. You can take benefit of it and move your account to any of the small banks close to you. These changes shall be effective from August 19, 2017. Hence the interest rate revision impact on customers with lower balance is negligible.

How have the rate cuts progressed? It shifted to a two-tier savings bank interest rate as well. If the daily balance remains over Rs 1 lakh to a maximum Rs 50 lakh, the bank reduced rates from 4% to 3.5%. The new rates comes into force from September 01,2017. Also, it will be applicable on resident as well as non-resident account holders.

Digital Payments Banks are still offering lucrative interest rates on deposits with them.

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