Savings rate deregulation: Here's all you need to know

By BankBazaar.com

As part of its deregulation drive, the Reserve Bank of India has deregulated interest rates on all deposits (except the saving deposit) long back. This step increased competition among banks and now depositors have the choice to figure out the highest fixed deposit rate and use the bank that offers it. RBI has deregulated the savings rate along with increasing the policy rates by 25 basis points, the 13th time in the last 18 months. Past actions of the RBI Keeping the process of deregulation going, RBI passed a draft order making its intention clear regarding deregulating the savings rate. However this has not been received well by the banks. The interest rate on savings deposit today stands at 4%, recently changed from 3.5%. The rate is low in today