After SBI, Axis Bank cuts interest rate on savings account
Few days after when SBI revised down its interest rates on savings account, private lender Axis Bank too followed the suit by making 50 basis points revision.
- Axis Bank makes 50 bps revision in interest rates of savings bank account
- Axis Bank offers 3.50% interest rate on savings account balance up to Rs 50 lakh
- Axis Bank offers 4% interest rate on savings account balance above Rs 50 lakh
Axis Bank on Tuesday revised the interest rates on savings account with immediate effect.
A person having savings account balance up to Rs 50 lakhs will now earn interest rate of 3.50% per annum - a cut of 50 basis points from previous rate.
While balance of Rs 50 lakhs and above will continue to earn 4% interest per annum.
This move comes after State Bank of India (SBI) introduced two-tier interest rates on savings accounts.
In SBI, a person with savings account balance of Rs 1 crore will continue to earn interest rates at 4% per annum, while a person holding balance below Rs 1 crore will only earn interest rate of 3.5% per annum.
According to SBI, the reduction was on the back of large inflows in savings & current accounts during the demonetisation period in the months of November & December 2016.
SBI said, "The decline in the rate of inflation, high real interest rates and the expected softening of interest rates are the other considerations warranting a revision in the rate of interest on savings bank."
Share price of Axis Bank was trading at Rs 497.80 per piece on BSE, down by Rs 9 or 1.61%.