Mumbai - Close on the heels of SBI cutting the interest rates on savings accounts, private lender Axis Bank also announced a 50 basis points (bps) reduction in the rates of savings accounts having deposits below Rs 50 lakh, effective August 7.
"The bank has revised the interest rate downward on savings account balance by 50 bps to 3.50% per annum on balance of up to Rs 50 lakh," it said in a BSE filing.
The bank will continue to offer 4% interest per annum on savings account balance of Rs 50 lakh and above, it said.
On July 31, the State Bank of India (SBI) had also announced a 50 bps cut in the interest rates but for savings accounts having deposits below Rs 1 crore.
The revised interest rate for SBI savings accounts having up to Rs 1 crore deposit now stands at 3.5% while those having above Rs 1 crore balance in their savings accounts continue to enjoy the 4% interest rate.
The decline in the rate of inflation and high real interest rates are considered the primary reason for banks going for rate cuts on the savings bank deposits.