Banks slashed saving bank account interest rates , brings 2-tier interest rate on saving account : A number of public and private banks in the country have slashed interest rates on savings bank accounts mainly due to fall in the rate of inflation, weak credit off take and surplus money with banks on account of demonetization. The move started when country’s largest lender State Bank of India slashed its interest rate on savings account deposits by 50 basis points to 3.5 per on balance of Rs 1 crore and below.
Following SBI, eleven more banks have reduced the savings bank account interest rate and more could be expected to follow soon.
Central Bank of India and Dena Bank on Monday announced cutting interest rates on savings accounts by 50 basis points for deposits up to Rs 50 lakh. Central Bank of India reduced its saving account interest rate by 50 basis point or 0.50 percentage point to 3.5 per cent for deposits up to Rs 50 lakh. Dena Bank cut the rate by similar margin to 3.5 per cent for deposits up to Rs 25 lakh.
Here in this article, we will are with list of banks which have slashed Interest rates on Saving Bank Account.
According to RBI rules, interest on savings account (for resident rupee accounts) shall be calculated on a daily basis and will be a uniform interest rate on balance up to Rs 1 lakh, irrespective of the amount in the account within this limit. Also, banks may offer differential rates of interest on balance above Rs 1 lakh.
Therefore, a bank may have a specific rate up to Rs 1 lakh, while a different rate for balance between Rs 1 lakh and Rs 50 lakh or Rs 1 crore. Some banks do not differentiate and may have a flat rate up to Rs 50 lakh or Rs 1 crore. Therefore, choose to go with a bank based on the average balance being maintained in your account.