Axis reduced interest on savings account – Axis Reduced Interest On Savings Account

Axis Bank, the third major bank of the country’s private sector, has reduced the interest team by 25 basis points on savings accounts, which will be applicable from April 15. According to the bank’s website, the bank is paying 2.75 percent interest on deposits up to Rs 50 lakh annually, while interest on deposit from Rs 50 lakh to Rs 2,000 crore is 3.25 percent annually. The interest rate on deposits over Rs 2,000 crore is 70 basis points with Overnight Mumbai Interbank Offer Rate (MIBOR).

On Tuesday, Axis Bank shares in BSE rose 4.18 percent to close at Rs 1,114.05 as the bank’s profit will increase in the current quarter (first quarter of FY 2026) due to low interest on savings account. At the same time, HDFC Bank, the country’s largest bank, had reduced the interest rate of 3 percent to 25 basis points to 2.75 percent earlier this week. At the same time, the bank is paying 3.25 percent interest on the deposit above 50 lakhs, which is applicable from April 12. HDFC shares in BSE rose by 3.23 percent to close at Rs 1,864.90.

According to the report of Macquerry Capital, the profit of the April June 2026 will increase the profit by 5 basis points of FY 2026 due to the reduction of interest on deposits in the savings account. ICICI Bank has not yet cut the interest rate on deposits in the savings account and is still paying 3 percent on deposits of Rs 50 lakh and 3.50 percent interest on deposits above Rs 50 lakh.State Bank of India is already paying 2.7 percent interest on deposit up to Rs 10 crore in savings account, which is comparatively low.

First Published – April 15, 2025 | 10:47 pm IST