After SBI, Axis Bank cuts interest rate on savings account by 50 bps to 3.5%
Mumbai: Private sector lender Axis Bank on Tuesday reduced interest rate on savings accounts by 50 basis points to 3.5% for deposits up to Rs50 lakh. However, the bank will continue to pay 4% interest on deposits of above Rs50 lakh.
Axis Bank is the fourth lender to reduce the interest rate after market leader State Bank of India (SBI) begun the process of reducing interest rate on savings account. “... the bank has revised the interest rate downward on Savings Account balance by 50 bps to 3.50% per annum on balance of up to Rs50 lakh,” Axis Bank said in a regulatory filing.
The new interest rates will be effective from today, it added.
On 31 July, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5% on balance of Rs1 crore and below.
Axis Bank shares closed at Rs499.30 apiece on BSE, down 1.32%. Another PSU lender Bank of Baroda had cut the rate to 3.5% on deposits of up to Rs50 lakh. Karnataka Bank too had tweaked the interest rate on savings bank accounts.PTI