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Axis Bank cuts savings bank deposits rate to 3.5% on deposits below Rs 50 lakh

Bank to continue to pay 4% interest on deposits of above Rs 50 lakh

Abhijit Lele  |  Mumbai 

Axis Bank

Private sector lender has reduced on savings bank accounts by 50 basis points to 3.5 per cent for up to Rs 50 lakh.

However, the bank will continue to pay four per cent interest on of above Rs 50 lakh. The new interest rates will be effective from August 8, said in its filing with the

Axis Bank’s action follows the decision by State Bank of (SBI) and to reduce rates on savings was the first bank to cut the savings deposit rate by 50 basis points to 3.5 per cent for up to Rs 1 crore. had cut the rate to 3.5 per cent on of up to Rs 50 lakh.

While Kotak Mahindra Bank retained the existing rates of five per cent on savings up to Rs 1 lakh and 6 per cent on between Rs 1 lakh and Rs 1 crore, it reduced the rate on savings of amounts above Rs 1 crore and up to Rs 5 crore from six per cent to 5.5 per cent. The on of over Rs 5 crores was retained at 5.5 per cent. Karnataka Bank, too, had tweaked the on savings

Managing Director Rajnish Kumar had said that it was a choice between increasing (marginal cost of funds-based lending rate) or reduce the savings bank rates. 

A hike in lending rates would have meant an increase in equated monthly instalments (EMIs) for retail, small and medium enterprises, and farm loans. opted to cut savings rate, helping to maintain at the existing level, he said.

First Published: Wed, August 09 2017. 09:29 IST