Following the Reserve Bank of India’s decision to cut the repo rate, many public and private banks have started lowering their interest rates on fixed deposits (FDs) and savings accounts.
ICICI Bank, the second-largest private sector bank, has also joined this trend by reducing the interest rate on savings account deposits by 0.25%.
According to information on ICICI Bank’s website, customers will now receive lower interest on their savings accounts.
This move comes shortly after HDFC Bank, a major competitor, reduced its deposit interest rates as well. While HDFC lowered rates on FDs, ICICI has reduced the rates on savings accounts.
New Interest Rates at ICICI Bank
As per ICICI Bank’s updated rates:
Savings account holders with balances up to ₹50 lakh will now earn 2.75% interest, the same as what HDFC Bank offers.
For balances above ₹50 lakh, the interest rate will be 3.25%.
These revised rates are effective from Wednesday (today).
SBI and Other Banks Also Cut Rates
The State Bank of India (SBI), the country’s largest bank, currently offers 2.70% interest on savings accounts, which is lower than what private banks are offering.
After two consecutive repo rate cuts by the RBI, banks have been lowering both loan and deposit interest rates. While most banks have focused on reducing FD rates, HDFC and ICICI have also decreased savings account rates.
Several banks, including SBI, PNB, Bank of India, and HDFC, have reduced FD interest rates by 0.25%. Some banks applied the cut to all FD tenures, while others only adjusted specific terms.
Comparison With Other Banks
SBI (State Bank of India): The country’s largest bank is currently offering 2.70% interest on savings accounts, which is lower than ICICI and HDFC.
Other Banks Cutting FD Rates: Following the RBI’s repo rate cuts, several banks—including SBI, PNB, Bank of India,
and HDFC—have reduced their FD interest rates by 0.25%. Some banks have applied these cuts to all FD durations, while others have done so only for select tenures.