Bank of India slashes savings rate to 3.5% for deposits up to Rs50 lakh
New Delhi: State-run Bank of India (BoI) has reduced interest rate on savings bank accounts by 50 basis points to 3.5% on deposits of up to Rs50 lakh.
However, the bank will continue to pay 4% interest on deposits of above Rs50 lakh. “The bank is introducing two-tier saving bank rate with effect from today,” BoI said in a regulatory filing on Thursday.
BoI said customers maintaining savings bank balance up to Rs50 lakh will get 3.5% while those maintaining above Rs50 lakh will continue to earn an interest of 4% per annum. On 31 July, State Bank of India (SBI) slashed interest rate on savings account deposits by 50 basis points to 3.5% on balance of Rs1 crore and below.
Other lenders, including private ones such as HDFC Bank and Axis bank, have followed suit. Earlier this month, Axis Bank had reduced interest rate on savings bank accounts by 50 basis points to 3.5% for deposits up to Rs50 lakh.
Another PSU lender, Bank of Baroda had slashed the rate to 3.5% on deposits of up to Rs50 lakh. Karnataka Bank too has tweaked the rate on savings bank accounts.