Private sector lender Axis Bank on Tuesday reduced the interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh. However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh. Axis Bank is the fourth lender to reduce the interest rate after market leader State Bank of India (SBI) begun the process of reducing the interest rate on savings bank account.“The bank has revised the interest rate downward on Savings Account balance by 50 bps to 3.50 per cent per annum on balance of up to Rs 50 lakh,” Axis Bank said in a regulatory filing. The new interest rates will be effective from today, it added. On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 Cr and below.Axis Bank shares closed at Rs 499.30 apiece on BSE, down 1.32 per cent. Another PSU lender Bank of Baroda had cut the rate to 3.5 per cent on deposits of up to Rs 50 lakh. Karnataka Bank too had tweaked the interest rate on savings bank accounts.Now banks will earn money from you
There is also closed a free period of free services in government banks. Debt interest income should not increase and rising N. P. A. This means that the pressure on banks’ profits is increasing due to the collapse of debt. In this case, the government bank is also charging those services which are still being offered to the customers free of cost. In addition, banks are increasing the number of charges already implemented on many services.According to banking sources, withdrawal of money from banks can also be charged. In such a scenario, you may have to charge every service in government banks. It may be recalled that the SBI bank already charged money on withdrawn or deposited from the bank branch. Recently, in Punjab National Bank has increased the charge on some of the services.
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