Private sector lender IndusInd Bank has hiked interest rates on savings accounts by up to 200 basis points, offering clients a return of as much as 6% on their deposits.
Savings bank accounts with a balance of over Rs 1 lakh will earn interest of 6%, while others will be paid 5.5% interest, the bank said in a release.
The interest on savings bank accounts was earlier fixed at 4% before the RBI freed the rates.
IndusInd Bank has also raised its lending rates by 25 basis points. The new rates will be effective from tomorrow.
The decision to raise interest rates comes within a week of the Reserve Bank hiking key policy rates and freeing the interest rates on savings bank accounts.
Earlier, Kotak Bank and YES Bank raised interest rates on savings deposits in their banks up to 6%. The lenders have also revised their lending rates upward by 25 basis points.
IndusInd Bank has a network of 350 branches. It also has representative offices in London and Dubai.