Bank Rule Changed: If you consider your money safe and beneficial by keeping it in a bank savings account, then this news may be worrying for you. The country’s big private banks HDFC, ICICI, Axis and Federal Bank have cut the interest rates on their savings accounts.
Bank Rule Changed: If you consider your money safe and beneficial by keeping it in a bank savings account, then this news may be worrying for you. The country’s big private banks HDFC, ICICI, Axis and Federal Bank have cut the interest rates on their savings accounts. This will have a direct impact on the income of crores of bank account holders, especially those who keep a large amount in their savings account for their retirement, medical or emergency needs.
How much interest will be available now?
HDFC Bank has changed the interest rate on its savings account, reducing it from 3.00% to 2.75% on amounts less than Rs 50 lakh. These new rates have come into effect from April 12, 2025. At the same time, 3.25% interest will now be available on the amount of more than 50 lakhs, which was 3.50% earlier. ICICI Bank has also made a similar cut. The bank will now give 2.75% interest on savings account up to Rs 50 lakh, while 3.25% interest will be available on the amount above this.
Axis Bank and Federal Bank have also reduced their savings rates in the same range. The special thing is that SBI is already giving a minimum rate of 2.70%, that is, now almost all the big banks have come to the same situation of low interest rates.
FD also affected
Not only savings account, but these banks have also cut the interest on Fixed Deposit (FD). HDFC Bank has cut its FD rates by up to 50 basis points. Now for general citizens, interest on FD will be from 3% to 7.10%, while senior citizens are getting a rate of 3.5% to 7.55%.
What should account holders do?
This fall in interest rates has come at a time when inflation is constantly rising and many people fulfill their small needs with the money deposited in their bank accounts. In such a situation, experts advise that if your amount is large and you want better returns, then you can turn to options like balanced mutual funds, debt funds or senior citizen saving schemes.
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