Karnataka Bank Ltd has introduced four interest variants on the balances maintained in Savings Bank (SB) accounts by its customers. The new rates will be effective from August 3.
The interest rate has been increased to 5 per cent from the existing 4 per cent for daily balances of above ₹1 crore. The interest rate remains at 4 per cent for balances of ₹50 lakh to ₹1 crore.
The interest rate for the balance in the range of more than ₹1 lakh to ₹50 lakh is reduced to 3.5 per cent from 4 per cent.
For the balance below ₹1 lakh, the rate is reduced to 3 per cent from the existing 4 per cent.
Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, the release said that the SB product is not price sensitive and is generally driven by product offerings, convenience and customer service standards.
He said SB deposits with higher balance will attract higher interest in the new structure, and hence it may induce customers to park more money in their SB accounts thus promoting savings habit among general public.
The above interest rate is applicable to resident Indians and also to SB-NRO and NRE accounts, the release said.