New Delhi. In the midst of the Corona epidemic, banks have now reduced interest rates on FDs. Recently, the country's largest bank SBI announced a reduction of 0.40 per cent or 40 basis points on FD for all periods. Twice in May, SBI reduced interest rates on FDs. A simple cut in interest rates means that customers will now get less benefits than before.
Nowadays the condition of interest rates on short-term FDs has become such that the savings account interest rate has become equal to it or more. SBI is paying 2.9 per cent for FD period of 7 to 45 days while 3.9 per cent for between 46 and 179 days. While paying 2.7% interest on savings account.
Kotak Mahindra and HDFC Bank also have a similar situation. The short-term FD rates in these two banks are lower than the savings account interest rates. Let us know that senior citizens generally get 25 basis points more interest rate than others. Recently, the condition of all banks is almost similar.
Talking about Punjab National Bank, they are giving 25 basis points more than the rate of FD for seven days to the savings account. According to media reports, DBS Bank economist Radhika Rao said that the reduction in deposit rate is usually done before or after the change in the interest rate of the loan. He further said that through this the bank tries to maintain margin.