IndusInd Bank raises balance slab for 6% interest on savings account

Starting from 4% on daily balance up to Rs 1 lakh, interest rate will be 6% for balances above Rs 10 lakh

Customers of IndusInd Bank would get different rates of interest on their deposits in savings accounts from May 1.

For daily balance up to Rs 1 lakh, the interest rate would be four per cent annually. The interest would be five per cent per annum for balance more than Rs 1 lakh and up to Rs 10 lakh. For balance above Rs 10 lakh, an interest rate of six per cent per annum would be offered.

The bank had, however, maintained the rate of six per cent per annum for daily balance equal to or greater than Rs 1 lakh. All the public sector banks and all large private banks offer four per cent on savings bank deposits.

The private sector lender was the first bank to reduce the interest rate on savings accounts, after it was deregulated by the Reserve Bank of India (RBI) in 2011.

Other banks have also changed the balance slabs for earning a higher interest rate in the recent past. YES Bank had said that its savings account holders would have to maintain a minimum balance of Rs 3 lakh to earn seven per cent interest rate from April 1, 2015.

Prior to that, the bank offered a seven per cent interest rate on savings account with minimum balance of Rs 1 lakh and above and six per cent per annum for a balance below Rs 1 lakh.

Kotak Mahindra Bank had also said that with effect from November 1, 2014, the interest rate on daily balances up to Rs 1 lakh in savings accounts will be revised to five per cent per annum. It had however said that daily balances over Rs 1 lakh will continue to earn six per cent interest a year.

Earlier the bank offered 5.5 per cent on deposits up to Rs 1 lakh.