HDFC Bank cuts interest rates on savings accounts to 3.5%

HDFC Bank Ltd on Thursday cut interest rates on most of its savings accounts to 3.5% from 4%.

Customers with savings bank account balance of 5 million rupees and above will continue to earn interest at 4% per annum, the lender said in a statement.

State Bank of India had cut deposit rates on most of its savings accounts to a six-year low last month to boost net interest margins, prior to the interest rate cut by the Reserve Bank of India.Lenders such as Yes Bank Ltd and Axis Bank Ltd among others have also cut interest rates on certain savings accounts.