Now, HDFC Bank cuts savings rate to 3.5% for deposits less than Rs 50 lakh

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

A revision in savings bank interest rate is effective August 19, 2017, HDFC Bank said in a statement.

Post revision, customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest at four per annum.

The revised rates will be applicable to both Resident and Non-resident customers.

Another private bank Yes Bank cut saving bank interest rate by 100 basis points (one per cent) to five per cent for balance less than Rs one lakh.

For balances of Rs one crore and above, the new rate will be 6.25 per cent, down from the old rate of 6.5 per cent. The new rates comes into force from September 01,2017.

On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 crore and below, two days ahead of the Reserve Bank's third bi-monthly policy review.

Another PSU lender Bank of Baroda had cut the rate to 3.5 per cent on deposits of up to Rs 50 lakh. Karnataka Bank too lowered interest rate on savings bank accounts.