Friday, September 13, 2013

Banks Won’t Cut Fixed Deposit Rates

Just few weeks back banks decided to cut on the fixed deposit rates in order to reduce the base rate which is the minimum lending rate below which customers can’t borrow, now the reverse is happening with the banks which has started to raise the fixed deposit rates and the decision of cutting the base rate has been put on hold.
Public banks have rolled back their decision on reducing the fixed deposit rates and recently, in a notice to the stock exchange, banks have decided to revise the fixed deposit rates.
As per the revision, the fixed deposit rates of 151-179 days and 180-269 days will be increased from 8% to 8.25% a year. Fixed deposits for 1-2 years, the fixed deposit rates would increase from 8.75% to 9% and with respect to the NRE deposits the fixed deposit rates will get a hike of 0.25% for deposits of 1-2 years.


Summary: Fixed deposit rates are on the rise and thus people have started showing interest in investing in fixed deposits. 

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