Saving deposits interest rates reduced

Mumbai, Aug 8: This is really a shocking news to the customers who never worried about their Savings account.

The Axis Bank has today has said that:

* Interest rate on savings bank accounts for deposits up to Rs. 50 lakh would receive 3.5 %.

* The bank has reduced the interest rates by 50 bps from current 4 %.

* The savings bank account deposits above RS 50 lakh would receive 4 % interest.

Axis Bank is the fourth such bank to reduce the interest rate after the RBI has reduced the repo rate recently.

* Bank of Baroda had also cut the rate to 3.5 per cent on deposits of up to Rs 50 Lakh.

* Karnataka Bank also reduced the interest rate on savings bank accounts.

* State Bank of India (SBI) recently has reduced the interest rates to 3.5 % for the saving bank deposits below RS 1 crore.

Sources say that many more banks may follow the suit in coming days.