HDFC Bank cuts rates on certain savings accounts to 3.5% from 4%

Lenders such as Yes Bank Ltd and Axis Bank Ltd among others have also cut interest rates on certain savings accounts.

New Delhi: Private sector lender HDFC Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 percent on deposits up to Rs 50 lakh.

However, the bank will continue to pay 4 percent interest on deposits of above Rs 50 lakh.

"Post revision, customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest at 4 percent per annum. Customers maintaining account balance of below Rs 50 lakh will earn interest at 3.5 percent per annum," HDFC Bank said in a regulatory filing.

The revised rates will be applicable to both resident and non-resident customers.

The new interest rates will be effective from August 19, it added.

On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 percent on balance of Rs 1 crore and below.

Earlier this month, Axis Bank had also 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 cut the rate to 3.5 percent on deposits of up to Rs 50 lakh. Karnataka Bank too has tweaked the interest rate on savings bank accounts.