Many banks have lowered interest rates after the Reserve Bank of India (RBI) slashed repo rate by 40 basis points on May 22 during the monetary policy review meeting. After the RBI announcement, the repo rate for banks now stands at 4 percent and reserve repo rate at 3.35 percent. To boost the economy jeopardised by the coronavirus lockdown, the central bank has cut rates significantly since the lockdown started in India.
Banks are slashing interest rates to encourage customers to hold less money in banks and promote spending. Other factors include excess liquidity with banks and low demand for fresh loans.
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Here's a list of banks that have cut savings account rates
State Bank of India: India's largest public-sector lender State Bank of India (SBI) on June 2 reduced interest rate on savings bank deposits by 5 basis points to 2.70 percent per annum across all tenors. The revised interest rate is applicable from May 31, 2020.
The bank has two slabs for savings bank deposits - balance up to Rs 1 lakh and those with above Rs 1 lakh balance.
Also read: SBI cuts savings bank deposit rates by 5 bps to 2.70%
It was the second reduction in fixed deposits (FD) rates by the lender in May. In April, the bank had reduced its savings bank deposits rate by 25 basis points to 2.75 percent per annum across all slabs.
ICICI Bank: In a regulatory filing on June 2, ICICI Bank said it has cut the interest rates on saving deposits by 25 basis points (bps). The new rates will come into effect from June 4.
The private sector lender has cut the interest rates on all deposits of less than Rs 50 lakh to 3 percent, a reduction of by 25 bps as against the existing 3.25 percent.
Likewise, for deposits of Rs 50 lakh and above, the account holders will earn an interest of 3.50 percent, down from 3.75 percent currently.
Also read: ICICI Bank cuts interest rate on saving deposits by 25 bps
Axis Bank: On June 1, Axis Bank slashed interest rate on savings account by 25 basis points (bps).
The interest on savings account for balance up to Rs 50 lakh has been lowered to 3.5 percent. For balance above Rs 50 lakh, the interest rate stands at 3.5 percent.
Kotak Mahindra Bank: On balance up to Rs 1 lakh, Kotak Mahindra Bank 's interest rates on savings accounts slashed to 3.50 percent per annum on May 25. On balance above Rs. 1 lakh, the same is 4 percent.
The interest rates will also be the same for Basic Savings Bank Deposit Account/Small Account holders.
Also read: Kotak Mahindra Bank interest rates on saving account slashed to 3.50% from May 25
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