ICICI Bank Slashes Savings Rates: Impact on Depositors

ICICI Bank has reduced its savings account interest rate by 0.25%, aligning with HDFC's rate cut after RBI's policy changes. This applies to balances up to Rs 50 lakh at 2.75% and over Rs 50 lakh at 3.25%. Other banks, including SBI, have also adjusted rates following the RBI's recent key rate cuts.

In a significant development in the banking sector, ICICI Bank has announced a 0.25% reduction in its savings account deposit interest rate. This announcement, reflected on the lender's official website, aligns ICICI's policies with industry trends following the RBI's recent monetary decisions.

The move by ICICI Bank comes on the heels of HDFC Bank's similar rate cut, which has set off a series of adjustments in deposit offerings across banks. ICICI's customers with savings balances up to Rs 50 lakh will now earn 2.75% interest, consistent with HDFC's rates, while those with balances exceeding Rs 50 lakh will see a rate of 3.25%.

This adjustment is part of a broader response to the RBI's two consecutive rate reductions, which have cumulatively decreased the repo rate by 0.50% in four months. The central bank has emphasized the need for rapid transmission of these rate cuts to bolster economic growth, prompting banks to recalibrate their interest offerings amidst ongoing challenges in deposit accretion and net interest margins.

(With inputs from agencies.)