ICICI Bank lowered its savings account interest rate by 25 basis points to match recent interest rate reductions from HDFC Bank and Axis Bank. The new interest rate for savings accounts below ₹50 lakh stands at 2.75% while the interest rate for savings accounts above ₹50 lakh stands at 3.25% which corresponds to HDFC Bank’s current structure.
Private banks have started to adopt the State Bank of India (SBI) savings deposit interest rate of 2.7% as part of their broader rate adjustment strategy. The interest rates at Kotak Mahindra Bank reach 3% for deposits under ₹50 lakh and 3.5% for deposits above this amount.
The interest rate adjustments extend beyond traditional savings deposit products. The largest bank in India SBI cut its fixed deposit interest rates by 10 basis points throughout various time periods. The one-year FD interest rate for general citizens decreased to 6.7% from 6.8% while two-to-three-year tenures decreased to 6.9% from 7%.
The interest rates for senior citizens decreased as well because FD rates for 1-2 years now amount to 7.2% and the rates for 2-3 years amount to 7.4%. The special 444-day Amrit Vrishti scheme provides an attractive 7.05% interest rate while senior citizens receive 7.55% and super seniors receive 7.65%.
