Karnataka Bank rationalizes Savings Bank interest rate

Mangalore Today News Network

Mangaluru, Aug 02, 2017 : Karnataka Bank, as part of its Asset Liability Management has introduced four interest variants on the balances maintained in SB accounts by its customers.

For daily balances of above ` 1 crore, the interest rate is revised to 5% p.a, from the existing 4% p.a, whereas for daily balances of ` 50 lakhs to ` 1 crore, the applicable interest rate is 4% p.a. Similarly for daily balance in the range of more than ` 1 lakh to ` 50 lakhs, the interest rate is reduced to 3.5% from the existing 4% and balance below ` 1 lakh, the revised rate is 3% from the existing 4%. The Bank’s ALCO in its meeting today, took the above decision and is effective from tomorrow. The above interest rate is applicable to resident Indians and also to SB-NRO & NRE accounts.

“SB product is not price sensitive and is generally driven by product offerings, convenience and customer service standards. Hence the interest rate revision impact on customers with lower balance is negligible. However, SBs with higher balance will attract higher interest in the new structure, and hence it may induce customers to park more money in their SB accounts, thus promoting savings habit among general public,” said Shri Mahabaleshwara M. S., Managing Director and CEO of the Bank.