Private sector lender ICICI Bank has cut the interest rate on savings account deposits by 25 basis points (bps). This follows a recent rate cut by other private banks, including HDFC Bank and Axis Bank. The bank now offers 2.75 per cent interest for savings accounts with balances up to ₹50 lakh, 0.25 per cent lower than earlier. It will now offer 3.25 per cent interest on savings accounts with over ₹50 lakh balance, down from 3.5 per cent earlier.
HDFC Bank also offers the same rates: 2.75 per cent for account balances below ₹50 lakh and 3.25 percent for account balances above ₹50 lakh. Kotak Mahindra Bank offers ₹50 lakh”>3 per cent for balance under ₹50 lakh and 3.5 per cent for balance above ₹50 lakh.
The move by top private banks is aimed at aligning their savings account rates with the country’s largest lender State Bank of India, which presently offers 2.7 per cent interest on savings account deposits.
SBI cuts fixed deposit rates
Notably, the largest state lender, State Bank of India (SBI), recently cut its interest rate on fixed deposits (FDs) by 10 basis points on two tenures. For a one-year FD, SBI cut interest by 10 basis points from 6.80 per cent to 6.7 per cent for general citizens. Additionally, for a term deposit of two to three years, SBI cut its interest from 7 to 6.9 per cent.
The interest rates offered to senior citizens on fixed deposits (FDs) of 1-2 year tenure will also fall from 7.3 per cent to 7.20 per cent starting today. On a tenure of 2-3 years, senior citizens are entitled to receive 7.4 per cent starting today instead of 7.5 per cent earlier.
The specific tenor scheme of 444 days (Amrit Vrishti) at a rate of 7.05 per cent is effective from April 15. Senior citizens are offered a rate of 7.55 per cent, and super senior citizens are offered a rate of 7.65 per cent.
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