There is another round of fixed deposit rate cuts to be announced soon. May be with in few days of time. As we know the fixed deposit rate reached highest 11.0% p.a. in starting of this year. People utilized this opportunity to invest more money on fixed deposit. Now, it is time for rate cuts. SBI has already reduced the interest rates, and once again there seems to be another round of rate cuts.
Fixed Deposit Rate Cuts
High cost deposit rates hover around 8% to 9.75% per annum, and banks are expected to lower the rates within the next few days, after first slashing lending rates. (SBI announced on Saturday that the next round of rate cuts is imminent.) Some banks and financial institutions have already announced cut in lending rates.
“Customers’ apprehensions about rate cuts are justified in the current scenario,” says V S Reddy, managing director of Lakshmi Vilas Bank. Though banks are under pressure from customers to renew their fixed deposits, they are equally bullish on CASA and are hoping to grow this business while renewing deposits.
If you have any plan to invest on fixed deposit, please hurry and utilize the better interest rates.