In the midst of the Corona crisis, private sector bank IDFC First Bank has decided to reduce the interest rate on savings account. Right now it was the only bank offering an interest rate of 6% on small savings. IDFC Bank was giving 6 percent interest on deposits less than 1 lakh. From May 1, the bank has decided to reduce the interest rate.
The bank has announced that those who maintain less than 1 lakh balance in their account will get an interest rate of 4%. Customers who maintain a balance between 1 lakh and 10 lakh will get an interest rate of 4.5% while a maximum interest rate of 5% will be given if there is more than 10 lakh account balance maintained. In the midst of the current economic conditions, the Reserve Bank had continuously cut the repo rate, due to which the loan also became cheaper and banks also reduced the interest rate on the deposit amount continuously. At present, ICICI banks are offering interest rates between 3-3.5% in private sector banks. SBI is giving a return of 2.7 per cent. Most private and public sector banks are currently giving 3-3.5 per cent returns on savings.
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