Savings Account Interest Rates: Several public and private banks have lowered interest rates offered on savings accounts. This move follows the Reserve Bank of India's (RBI) 25 basis point cut in the repo rate to 6%, prompting a sector-wide reduction in deposit rates.
Last week, the RBI's Monetary Policy Committee reduced the repo rate by 25 basis points. The central bank noted that retail inflation is well within the 4% target, with March inflation expected to align with this level. Raising the repo rate is a tool the RBI uses to control inflation by reducing liquidity and curbing demand.
These Banks Have Cut Interest Rates On Savings Account In April 2025
As borrowing from the RBI becomes cheaper, banks rely less on public deposits to fund lending. To expand their net interest margins, banks have started lowering savings interest rates, since they no longer need to offer high returns to attract deposits.
Banks including Axis Bank, HDFC Bank, ICICI Bank have initiated cuts in savings deposit interest rates.
On April 12, HDFC Bank announced a 25 basis point cut in savings account interest rates to 2.75%.
Axis Bank also lowered its rates by 25 basis points. For balances below Rs 50 lakh, the new rate is 2.75% per annum, while accounts holding over Rs 50 lakh will now earn 3.25% annually.
ICICI Bank Ltd. cut the interest rate on its savings account by 25 basis points to 2.75%, effective Wednesday, according to the bank's website. Balances that are below Rs 50 lakh will attract a savings account rate of 2.75% annually and those above Rs 50 lakh will attract a rate of interest of 3.25% per year.
Revised Savings Accounts Interest Rates Of Top Banks In April 2025
(These interest Rates apply to balances below Rs 50 lakh)
HDFC Bank - 2.75% (effective April 12)
Axis Bank - 2.75% (effective Apil 15)
ICICI Bank - 2.75% (effective April 16)
Kotak Mahindra Bank - 3.00% p.a. (effective from Feb. 17)
Yes Bank - 3-7% on different amounts starting from Rs 1 lakh (effective April 3)
SBI - 2.70% per annum for balances below Rs 10 crore. (These rates are effective from October 15, 2022)
IDFC First Bank - 3-7.25% on different amounts starting with 3% on less than Rs 5 lakh. (These rates are effective effective from
20th February 2025)
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