Canara Bank, one of the largest public sector banks is next to cut interest rate on saving bank deposits. Like other banks, Canara Bank also adopted 2-tier savings bank interest rate cutting it to 3.5 percent on deposits of upto ₹50 lakh. However , the bank has retained the rate of interest at 4 percent for all deposits above ₹50 lakh.
Many public and private sector banks in country cutting interest rates on saving bank deposits. The move started with the country’s largest lender State Bank of India slashing interest rates on savings bank accounts from 4% to 3.5% per annum.
Also Read : MFs tapping retail savings on slashed saving bank deposit rates : ICRA
Other banks followed the same suit and till now eleven banks have slashed interest rates. Now Canara Bank has decided to revise the interest rate on Saving Bank Deposits (Domestic / NRE/ NRO) w.e.f 01/09/2017 as follows :
- For Saving Deposits upto ₹50 lakh – 3.50 %
- For Saving Deposits of above ₹50 lakh – 4.00 %
The new interest rates will be effective from 1st September 2017.
What will be the periodicity of the payment of Interest ?
The periodicity of the payment of interest will remain same i.e, at quarterly intervals.
The calculation of interest will be on daily product basis and crediting to the Saving Bank accounts on 1st February, 1st May, 1st August and 1st November every year.
About Canara Bank :
Canara Bank , headquartered in Bengaluru is one of the largest public sector banks of India. The Bank was estabilished at Mangalore in 1906 by Ammembal Subba Rao Pai. Government nationalized the bank in 1969. The bank has around 6090 branches across the country and more than 10000 ATMs. The bank has also oversea presence in London, Hong Kong, Moscow, Shanghai, Doha, Bahrain , South Africa, Dubai, Tanzania and New York.
