Bank of Baroda cuts savings rate by 0.50%

Kotak Mahindra Bank has also joined the league and slashed its interest on savings account deposits by 0.50 percent to 5.5 percent on balance between Rs 1 crore and Rs 5 crore.

New Delhi: Bank of Baroda on Saturday decided to cut interest rates on savings account deposits by 0.50 percent to 3.5 percent on balance up to Rs 50 lakh.

However, the bank will continue to offer 4 percent interest for savings account balance above Rs 50 lakh.

Kotak Mahindra Bank on Thursday decided to slash interest on savings account deposits by 0.50 percent to 5.5 percent on balance between Rs 1 crore and Rs 5 crore.

The Reserve Bank yesterday cut its key lending rate by 0.25 percent - first time in 10 months - to about 7-year low of 6 percent, a move which is likely to translate into lower interests rates for home, auto and other loans as also boost economic activity.

Country's largest lender State Bank of India had earlier reduced interest on savings account deposits by 50 basis points to 3.5 percent on balance up to Rs 1 crore.