Bad News: HDFC Bank cuts savings account interest rate by 50 basis points

Key Highlights: 

• HDFC Bank cuts savings bank interest rate by 50 bps
• Savings account below Rs 50 lakh to earn rates of 3.50% per annum
• Six banks have already cut savings bank interest rate

HDFC Bank on Thursday joined six other banks in cutting interest rates on certain savings accounts. 

HDFC Bank said that customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest rates at 4% per annum while customers having balance account below Rs 50 lakh will earn interest rates at 3.50% per annum - a 50 basis points cut from previous rate. 

Despite banks reducing deposit rates, Mutual Funds are a good investment option