After SBI, Bank of Baroda cuts interest on savings account by 50 basis points | business-news | Hindustan Times
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After SBI, Bank of Baroda cuts interest on savings account by 50 basis points

Effective Saturday, the interest rate on savings bank balance of up to Rs 50 lakh has been reduced to 3.5% from the current annual 4%.

business Updated: Aug 04, 2017 22:14 IST
Bank of Baroda has slashed interest rate on savings bank account to 3.5% on deposits of up to Rs 50 lakh.
Bank of Baroda has slashed interest rate on savings bank account to 3.5% on deposits of up to Rs 50 lakh.(Bloomberg)

Within days of SBI slashing interest rate on savings bank account, another PSU bank -- Bank of Baroda -- has followed suit, cutting it to 3.5% on deposits of up to Rs 50 lakh.

“We wish to inform you that it has been decided to introduce a 2-tier savings bank interest rate (from) August 5...,” the bank said in a regulatory filing.

Effective Saturday, the interest rate on savings bank balance of up to Rs 50 lakh has been reduced to 3.5% from the current annual 4%.

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

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% on balance of Rs 1 crore and below.

However, SBI continues to offer 4% interest on savings account balance of Rs 1 crore and above.

More banks are likely to follow suit.