Andhra Bank cuts interest rate on savings account to 3.5%

PSU lender Andhra Bank today lowered interest rate on its savings bank account to 3.5 per cent in line with market competition.

Deposits up to Rs 50 lakh will now attract 3.5 per cent interest rate from 4 per cent, Andhra Bank said in a statement.

However, deposits over Rs 50 lakh will still attract 4 per cent interest.

The new rates will be effective from September 15, it said.

The rate cut chain was triggered by State Bank of India (SBI) reducing interest rate on savings deposits on July 31 by 0.5 per cent to 3.5 per cent for deposits up to Rs 1 crore.