Banking majors — PNB and HDFC Bank — on Thursday said that they will reduce interest rate by 0.5 per cent on saving bank deposits of below Rs 50 lakh to 3.5 per cent per annum with effect from Saturday.
HDFC Bank said that post revision, customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest at 4 per cent per annum.
The revised rates will be applicable to both resident and non-resident customers, HDFC Bank said.
Similarly, PNB said that it will reduce interest rate on saving deposits up to Rs 50 lakh by 0.5 per cent to 3.5 per cent, whereas savings fund account balance of above Rs 50 lakh will garner interest at the rate of 4 per cent per annum.
In recent days, many private and public lenders including the State Bank of India have slashed their saving account deposit rates.