Savings Account Interest Rates Reduced: Major Banks Announce Cuts:

Savings Account: If you earn interest by keeping money in a bank’s savings account, then this news may disappoint you. Actually, the big Indian banks have reduced the profit they give on the savings accounts to 2.75 percent effective from May this year. This means that now you will get less profit on the money deposited in the savings account than before.

(Regaining)How much and Which bank cut how much

HDFC Bank, ICICI Bank, Axes Bank and Federal Bank have all reduced their savings account interest rates by 25 basis points to 2.75% for amounts less than Rs 50 lakh. Earlier the interest rate was 3 percent. State Bank of India (SBI) has been offering 2.7% interest on amounts less than Rs 10 crore since October 2022. Some of these banks have also reduced the interest on Fixed Deposits by up to 25 basis points.

For ICICI Bank customers

The bank has cut its savings account deposit interest rate by 0.25 per cent. Depositors will get 2.75 per cent around savings up to 50 lakh which is the same as offered by HDFC Bank. For balances above Rs 50 lakh, it will rise to 3.25 percent.

For clients using HDFC Bank services

Starting April 12, 2025, the bank will start adjusting the savings account interest rate. It has changed the payment for amounts lower than Rs 50 lakh to 2.75% per annum from 3.00% per annum. Also, the payment for Rs 50 lakh and above will now be 3.25% per annum instead of 3.50% per annum.

Moreover, the bank has announed a reduction in FD interest rates by up to 50 basis points (bps) and now offer interest rates from 3% to 7.10% for the rest of the citizens and, 3.5% to 7.55% for the senior citizens, repsectively.