After SBI, Bank of Baroda cuts interest rate on savings account by 50 bps
New Delhi: Within days of State of Bank of India (SBI) slashing interest rate on savings bank account, another public sector unit (PSU) bank—Bank of Baroda—has followed suit, cutting it to 3.5% on deposits of up to Rs50 lakh.
“We wish to inform you that it has been decided to introduce a 2-tier savings bank interest rate (from) 5 August...,” the bank said in a regulatory filing.
Effective Saturday, the interest rate on savings bank balance of up to Rs50 lakh has been reduced to 3.5% from the current annual 4%. However, for balance above of Rs50 lakh, the bank has retained the rate at 4%.
On 31 July, the country’s largest lender State Bank of India had slashed interest rate on savings account deposits by 50 basis points to 3.5% on balance of Rs1 crore and below. However, SBI continues to offer 4% interest on savings account balance of Rs1 crore and above.
More banks are likely to follow suit.