Axis Bank cuts interest rate on savings bank accounts by 50 basis points to 3.5%

Mumbai: Private sector lender Axis Bank reduced interest rate on savings bank accounts by 50 basis points to 3.5 percent for deposits up to Rs 50 lakh. However, the bank will continue to pay 4 percent interest on deposits of above Rs 50 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 bank account. “… the bank has revised the interest rate downward on Savings Account balance by 50 bps to 3.50 percent per annum on balance of up to Rs 50 lakh,” Axis Bank said in a regulatory filing. [caption id=“attachment_3862043” align=“alignleft” width=“380”] Reuters[/caption] The new interest rates will be effective from Tuesday, it added. On 31 July, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 percent on balance of Rs 1 crore and below. Another PSU lender Bank of Baroda had cut the rate to 3.5 percent on deposits of up to Rs 50 lakh. Karnataka Bank too had tweaked the interest rate on savings bank accounts.