HomeNewsBusinessEconomySavings rate freed: How does it affect you and your bank

Savings rate freed: How does it affect you and your bank

Immediately after the Reserve Bank of India (RBI) de-regulated savings rate, private sector lender Yes Bank was the first one to hike its savings deposit rate by 200 basis points to 6%. Its peer banks Kotak Mahindra Bank and IndusInd Bank joined the bandwagon in the next two days. So, are you planning to shift your savings account?

November 08, 2011 / 08:01 IST
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Saikat Das
Moneycontrol.com


Immediately after the Reserve Bank of India (RBI) de-regulated savings rate, private sector lender Yes Bank was the first one to hike its savings deposit rate by 200 basis points to 6%. 
Peers Kotak Mahindra Bank and IndusInd Bank joined the bandwagon in the next two days. So, are you planning to shift your savings account?
Consider this:
No doubt de-regulation of savings rate will earn you some extra bucks on account of interest rates. However, you need to take care of some other factors as well. Prior to the de-regulation, banks across the board, were offering uniform 4% (p.a) rate of interest on savings deposits.
first published: Nov 5, 2011 01:19 pm

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