After the RBI announcement the Repo rate for banks now stands at 4% and reverse repo rate at 3.35%, to boost the economy jeopardized by the corona virus lockdown. Banks are slashing interest rates to encourage customers to hold less money in banks and promote spending.
State Bank of India: India's largest public-sector lender- on June 2 reduced interest rate on savings bank deposits by 5 basis points to 2.70 percent per annum across all tenors. The revised interest rate is applicable from May 31, 2020.
The bank has two slabs for savings bank deposits - balance up to Rs 1 lakh and those with above Rs 1 lakh balance.
ICICI Bank: In a regulatory filing on June 2, ICICI Bank cut the interest rates on saving deposits by 25 basis points (bps). The new rates will come into effect from June 4.
The private sector lender has cut the interest rates on all deposits of less than Rs 50 lakh to 3 percent, a reduction of by 25 bps as against the existing 3.25 percent.
Axis Bank: On June 1, Axis Bank slashed interest rate on savings account by 25 basis points (bps).
The interest on savings account for balance up to Rs 50 lakh has been lowered to 3.5 percent. For balance above Rs 50 lakh, the interest rate stands at 3.5 percent.
Kotak Mahindra Bank: On balance up to Rs 1 lakh, Kotak Mahindra Bank 's interest rates on savings accounts slashed to 3.50 percent per annum on May 25. On balance above Rs. 1 lakh, the same is 4 percent.
The interest rates will also be the same for Basic Savings Bank Deposit Account/Small Account holders.
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