Andhra Bank cuts interest rate on savings account to 3.5%. Public Sector Undertaking (PSU) lender Andhra Bank lowered interest rate on its savings bank account to 3.5 per cent in line with market competition. Deposits up to Rs 50 lakh will now attract 3.5 per cent interest rate from 4 per cent, Andhra Bank said in a statement.However, deposits over Rs 50 lakh will still attract 4 per cent interest. New rates will be effective from September 15. The rate cut chain was triggered by State Bank of India (SBI) reducing interest rate on savings deposits on July 31 by 0.5 per cent to 3.5 per cent for deposits up to Rs 1 crore. Many subsequent bank accounts have already made interest tax deductions.Many banks have set the limits of minimum balance in Savings accounts. But the country’s largest public sector Bank SBI has given option to people of opening a new basic savings account. In this way account holders will receive all types of such facilities, as is done on savings account. However, no limit has been fixed on this minimum balance. SBI said that the condition of Minimum Balance on Basic Savings Bank Deposit Account is not applicable.However, there is a requirement that the customer should not have any other savings account. If they have saving or basic account, then the customer must close it within 4 weeks. The facility of Rupee Debit Card and Net Banking also comes with this account. The same interest is paid annually on this account which is available on State Bank’s other savings accounts.The most important feature of this account is that there is no need to keep of minimum or maximum balance. This account can be opened single or joint. The state bank has the facility of opening it in all the branches located in the country. However, after that there will be a fee of 499 rupees per year.
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