ICICI, Union Bank of India cut savings rate

ICICI Bank the country’s largest private sector lender and, one of its public sector peer Union Bank of India reduced their savings bank rates by 50 basis points on Friday, expanding the number of banks that have cut their savings rates in recent times. 

State Bank of India (SBI) started the trend on July 31 with a cut of 50 basis points on savings deposits. Bank of Baroda, Punjab National Bank, HDFC Bank, Axis Bank, YES Bank and now Union Bank and ICICI Bank have also cut to match competition. But, the baskets are different for different banks. 

For example, SBI reduced its savings rate to 3.5 per cent for deposits up to Rs 1 crore. For ICICI Bank, the cut is effective for deposits up to Rs 50 lakh. 

Beyond Rs 50 lakh, savings bank remain at four per cent. In case of Union Bank, the cut in savings rate would be applicable for deposits up to Rs 25 lakh. For deposits above Rs 25 lakh, the rates continue to remain at four per cent.