HDFC Bank on Thursday announced that it had reduced the interest rate on savings bank account by 50 basis points to 3.5% on deposits up to Rs 50 lakh. The new rates will be effective from August 19.

“Post revision, customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest at 4% per annum,” the bank said in a regulatory filing at the Bombay Stock Exchange. “Customers maintaining account balance of below Rs 50 lakh will earn interest at 3.5% per annum.”

With this, HDFC Bank became the seventh lender in over two weeks to have slashed its interest rates. On Wednesday, Yes Bank had reduced its interest rate on savings bank account by 1% to 5% for deposits less than Rs 1 lakh. The bank had said it will continue to pay 6% interest on deposits of over Rs 1 lakh and less than Rs 1 crore.

On July 31, the State Bank of India had slashed its interest rate on savings account to 3.5% on balance of Rs 1 crore and below. Moreover, Axis Bank, Bank of Baroda, Indian Bank and Karnataka Bank had announced to reduce their return on savings account.