HDFC Bank Revises Interest Rates On Saving Accounts

HDFC Bank cuts interest rates on savings accounts to 3.5%			business			Updated

India's number second lender by assets, HDFC noted that post revision, customers maintaining savings bank account balance of Rs. 50 lakh and above will continue to earn interest at four percent per annum, while those with balance lower than the aforementioned amount will earn an interest rate of 3.5 percent per annum. The bank would pay interest of 5 per cent on balance above Rs 1 crore. Under the new structure, the interest rate revision impact on customers with lower balance is negligible while the saving bank accounts with higher balance will attract higher interest.

On 31 July, State Bank of India slashed interest rate on savings account deposits by 50 bps to 3.5% on balance of Rs1 crore and below. If the daily balance were to be below Rs 1 lakh, the rate offered by the bank is now only 3%, a change from the earlier 4%. For deposits of or above Rs 1 crore, the bank has reduced the interest rate from 6.5% to 6.25%. Smaller banks are likely to keep their rates unchanged in an effort to garner more market share.

Digital Payments Banks are still offering lucrative interest rates on deposits with them. The numbers of rate cut, rate offered and applicable deposit limits were the same as Bank of Baroda. However, the 6% rate will remain for the over Rs 1 lakh to below Rs 1 crore deposit bracket. The interest rate has been reduced by 1 per cent from 4 per cent, Karnataka Bank said in a statement.

Market participants believe that the interest rate war will stay between large public-sector and private-sector banks. Until now seven banks including SBI have reduced their return on savings accounts.

Related:

Comments

Latest news

More executives resign from Trump council — BBCI
Under Armour CEO Kevin Plank , who also resigned Monday, told CNBC earlier in the year that he saw Trump as " a real asset for the country ".

Anna Faris Breaks Her Silence On Split From Chris Pratt
For the first time since their divorce has publicly been revealed, Anna Faris has chose to talk about this subject. The amusing lady seemingly hinted at her own relationship in her next statement.

Kate Middleton isn't allowed to sign autographs - here's why
Charles then stunned his protection squad by asking one of them to find a piece of paper for him to sign. Among them were Tony and Meg Hendy - whose home in St Blazey had been deluged with water and mud.

PM Modi's Kashmir outreach welcomed in Jammu and Kashmir
Jaitley further said the numbers mentioned were not dependent on the report of the Reserve Bank of India. He said that the government will not interfere in their functioning.

Ravi Shastri names Wriddhiman Saha best wicket-keeper in world cricket
Truly, Kohli is one of the best captains we have in the sport, and behind every great captain can usually be found a great team. Sri Lanka last played India in an ODI series in November 2014-15 (in India ) and were blanked 0-5.

Other news