Axis Bank cuts interest rate on savings accounts by 0.50%

New Delhi: Within days of SBI slashing interest rate on savings bank account - Axis Bank - has followed suit, cutting it to 3.5 percent on deposits of up to Rs 50 lakh.

However, for balance above of Rs 50 lakh, the bank has retained the rate at 4 percent.

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 0.50 points to 3.50 percent per annum on balance of up to Rs 50 lakh," Axis Bank said in a regulatory filing.

The new interest rates will be effective from today.

On July 31, the country's largest lender State Bank of India had slashed interest rate on savings account deposits by 50 basis points to 3.5 percent on balance of Rs 1 crore and below.

However, SBI continues to offer 4 percent interest on savings account balance of Rs 1 crore and above. More banks are likely to follow suit.

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.