HDFC Bank on Thursday reduced the interest rates on most of its saving accounts. Earlier these accounts earned interest at the rate of 4 percent, but it has now been reduced to 3.5 percent.
Customers who maintain a balance of more than Rs 50 Lakhs in their savings account will continue to earn interest at the previous rate of 4 percent. But those with balance below Rs 50 Lakhs will now get interest at 3.5 percent only.
Post the repo rate cut by RBI on 2nd August, banks started slashing interest rates on certain savings accounts. HDFC is the seventh bank to cut interest rates after Yes Bank, Indian Bank, Axis Bank, Karnataka Bank, Bank of Baroda and SBI.
The new interest rate on HDFC Savings Accounts will be effective from 19th August.