Axis Bank cuts rates for savings accounts, offers 2.75% for some deposits

Annual interest rate for balance slabs between Rs 50 lakh and less than Rs 2,000 Cr is 3.25%

Axis Bank has lowered its interest rates for savings accounts by 25 basis points from April 15, following other lenders in announcing cuts.

 

Axis Bank’s new rates will apply to domestic, Non-Resident External (NRE), and Non-Resident Ordinary (NRO) savings accounts; they will follow a tiered structure based on the account balance.

 

According to the bank's website, savings account balances below Rs 50 lakh will earn an annual interest rate of 2.75 per cent. Balances ranging from Rs 50 lakh to below Rs 2,000 crore will earn 3.25 per cent per annum. Balances of Rs 2,000 crore and above will have their interest rates linked to the overnight Mumbai Interbank Offered Rate (MIBOR) plus 0.70 per cent.  ALSO READ | ICICI Bank slashes savings account deposit interest rate by 0.25% 

 

Saving account interest rate:

Balance Slabs	Applicable Rate of Interest w.e.f. 15th April 2025
Less than Rs. 50 Lacs	2.75% p.a.
Rs. 50 Lacs and up to less than Rs. 2000 Crs	3.25% p.a.
Rs. 2000 crs and above	Overnight MIBOR +0.70%

 

According to Axis Bank’s website the formula to calculate the savings account interest rate is:

The interest accrued on Savings Accounts is computed daily, considering the closing balance. Interest is then credited to the account semi-annually or quarterly, depending on the type of savings account and the bank policy. Axis Bank follows the law of simple interest to calculate daily interest for a standard savings account.  ALSO READ | HDFC Bank cuts saving account interest rate, now offers 2.75 per cent

Here is the formula:

Daily interest = Daily balance *(Interest/Days in the year)

 

Let us suppose the balance of a savings account is Rs 5 lakhs on a given day and the savings interest rate is 3 per cent per annum, the calculation would be as follows:

 

Daily interest = 5 lakh * (3/100)/365=Rs 41.09

 

Assuming the account maintained a daily balance of Rs 5 lakh for a month. In this case, the total interest earned in the entire month would be:

 

Monthly interest = 5 lakh * 30 * (3/100)/365 = Rs 1232.87

 

HDFC Bank recently reduced its savings account interest rates by 25 basis points. The bank now offers 2.75 per cent per annum on balances below Rs 50 lakh and 3.25 per cent on balances above Rs 50 lakh. For ultra-high-value deposits, the interest rate is linked to the overnight MIBOR plus 0.70 per cent.

 

Fixed deposit rate cuts by other banks

Bank of India (BoI) has withdrawn its special-rate 400-day fixed deposit that offered 7.3 percent, besides reducing rates across tenures. It has also passed on the entire 25-bps repo rate cut benefit to its existing as well as new home loan borrowers.

 

State Bank of India has reduced its rates by 10 basis points (bps) for deposits below Rs 3 crore and maturing between one year and less than three years, effective April 15.

 

Canara Bank has reduced fixed deposit interest rates by up to 20 bps on select tenures for deposits below Rs 3 crore. According to the bank’s website, the revised rates are effective from April 10. Following the adjustment, the bank now offers interest rates ranging from 4 per cent to 7.25 per cent for the general public and between 4 per cent and 7.75 per cent for senior citizens on callable deposits.

 

Bandhan Bank revised its rates for bulk deposits over Rs 3 crore from April 3, 2025. The bank now offers 8 per cent for callable bulk deposits of 12 months and 12 months plus 1 day to under 13 months. Up to 8.3 per cent for non-callable bulk deposits of the same tenure