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Private sector lender, IndusInd has decided to reduce interest on savings rate to the standard 4 per cent from 4.5 per cent on balances up to Rs 1 lakh from May 1.
This means, your savings account balance with IndusInd bank will give you 0.50 per cent lesser interest on balance below Rs 1 lakh.
“Dear customer, effective 01.05.2015, the interest paid on daily balances on your savings account will be revised to 4 per cent p.a. for daily balances up to 1 Lakh, 5 per cent for balances between 1 Lakh to Rs 10 Lakh and 6 per cent p.a. for daily balance above Rs. 10 Lakh,” the bank said on its website.
In October 2011, after RBI deregulated the interest rates on savings deposits, IndusInd Bank, Yes Bank and Kotak Mahindra Bank had increased the rates to attract customers.
IndusInd had hiked its interest rates from 4 per cent to 5.5 per cent on balance below Rs 1 lakh and 6 per cent on balance above Rs 1 lakh.
In September last year, the bank had reduced this to 4.5 per cent on balance below Rs 1 lakh, maintaining a status quo of 6 per cent on balance above Rs 1 lakh.
The increase in interest rates has helped the above banks to increase its share of savings accounts that remain sticky and contribute to retail growth of the bank.
IndusInd Bank chief also hinted that the bank will cut its base rate soon. At present, its base rate or the minimum lending rate is at 11 per cent.
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