Seven banks have cut: Here are best interest rates offered by banks for your deposits
A total of seven banks have revised interest rates on savings bank account between 25 basis points - 100 basis points on various minimum balance.
Key Highlights:
- Seven banks revised savings interest rates
- Savings interest rates getting lower for the first time in six years
- Savings account interest rates at lowest at 3.50%
When an individual is left with a lump sum money, banks is the safest place they feel to park that amount. A savings account is considered as one of the simplest form of account where an individual can store in their money and earn interest over it.
For an individual the higher the interest rate on savings account the better it is for them. Savings accounts are best suited for salaried employees or people with a monthly income.
However, at present major banks are undergoing downward revision in their savings account interest rates.
It all started with State Bank of India on July 31, 2017 – who announced a two tier interest rates on savings account. A person with SBI 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.
SBI group has saving deposits of Rs 9.4 lakh crore – 90% is below Rs 1 crore accounts which would now be getting interest rate of 3.5% per annum.
Why are banks choosing to cut savings account interest rates?
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