After SBI, Bank of Baroda cuts interest rate on savings account by 50 bps
Bank of Baroda has slashed the interest rate on savings bank account of up to Rs50 lakh to 3.5% from the current annual 4%
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.
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