Canara Bank cuts savings rate on deposits by 25 basis points

Public sector lender Canara Bank on Monday said it will cut deposit rates by 0.25 percentage points with effect from October 15, 2019.

The present interest rate on savings bank deposits of Canara Bank will be revised with effect from October 15, 2019, the bank said in a regulatory filing.

For outstanding balances of less than Rs 50 lakh, depositors will earn 3.25 per cent interest, while for outstanding balances of Rs 50 lakh and more, the interest rate will come down to 3.75 per cent.

The bank currently offers an interest rate of 3.50 per cent for deposits less than Rs 50 lakh and 4 per cent for Rs 50 lakh and above deposits.

The move comes days after the country's largest lender State Bank of India (SBI)announced to cut deposit rates on balance up to Rs 1 lakh to 3.25 per cent from 3.50 per cent with effect from November 1, 2019.

SBI also slashed its retail term deposits and bulk term deposits rates by 10 basis points and 30 basis points, respectively, for one-year to less than two-years period effective October 10.