New Delhi: Public lender Bank of India has reduced interest rate on savings bank accounts by 50 basis points to 3.5 percent on deposits of up to Rs 50 lakh. However, the bank will continue to pay 4 percent interest on deposits of above Rs 50 lakh.
"The bank is introducing two tier saving bank rate with effect from today," Bank of India said in a regulatory filing on Thursday.
BOI said customers maintaining savings bank balance up to Rs 50 lakh will get 3.5 percent while those maintaining above Rs 50 lakh will continue to earn an interest of 4 percent per annum.
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. 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 percent for deposits up to Rs 50 lakh.
Another PSU lender, Bank of Baroda had slashed the rate to 3.5 percent on deposits of up to Rs 50 lakh. Karnataka Bank too has tweaked the rate on savings bank accounts.
Updated Date: Aug 24, 2017 14:07 PM