Banks likely to withdraw FDs that offer 8-8.5%

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show »

Banks may soon be withdrawing fixed deposits that offer a grand 8-8.5%. CNBC-TV18 reports that most bankers believe that rates aren't going to rise any further.

The State Bank of India Chairman said, at the Federation of Indian Chambers of Commerce & Industry, FICCI, seminar, that he sees rates softening, and then kind of moderated his statement saying he would rather give his views after the second quarter results and monetary policy review.

However, many bond dealers believe that Bhatt was right in sensing that interest rates have definitely peaked.

OP Bhatt, Chairman, SBI said, “Looking at the falling crude prices and the slowdown in the US economy, clearly there is a softening.”

So what does this mean for the small borrower and depositor? It is likely that banks will end their high return deposit products like ICICI 's 8% for 390 days and IDBI Bank ’s 8.25% for 500 days deposits.

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