Bandhan Bank Raises Interest Rates on Savings Accounts: Details Inside

Bandhan Bank Savings Account Rate

The bank will continue to offer a 3% interest rate on savings accounts with a daily balance up to ₹1,000,000. The bank increased the interest rate on savings accounts with daily balances of more than ₹1 lakh and up ₹10 lakh from 5% to 6%, an increase of 100 bps. Bandhan Bank will continue to offer an interest rate of 6.25% on savings accounts with daily balances of ₹10 lakh and up ₹2 crore, and a rate of 6.00% on accounts with daily balances of ₹2 crore and up ₹10 crore. Bandhan Bank kept its interest rate unchanged on savings accounts with daily balances of more than ₹10 crore to ₹100 to 6.00%.

Bandhan Bank mentioned on its website that “interest of 3.00% per annum will be charged for an amount up to ₹1 lakh, 6% per annum will be applied on the extra balance above ₹1 lakh up to ₹10 lakh, 6.25% per annum will be applied on additional balance beyond ₹10 lakh up to ₹2 crore and 6% per annum will be applied on the additional balance on top ₹2 crore up to ₹100 crore.”

Accounts of National Rupee savings banks and non-residents are subject to these interest rates. According to the bank, interest is paid each calendar quarter on June 30, September 30, December 31 and March 31 and is determined daily based on the account’s end-of-day balance.

Economists expect further interest rate hikes for loan and deposit products after the Reserve Bank of India hiked its repo rate by 50 basis points from 4.9% to 5.4% . In addition, Canara Bank, a public sector lender, raised interest rates on term deposits worth less than ₹2 crores on top of Bandhan Bank savings account interest rate increase. Canara Bank’s fixed deposit interest rates have increased over several terms and, according to the bank’s website, the new rates will take effect August 8, 2022. Further interest rate increases on retail lending products and deposit products are expected after the repo rate increase.

First post