In the coming months fixed deposit can again be a good investment option as the deposit rates are on their way up.
Posts Tagged ‘State Bank’
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Banks report surge in Casa ratio as against fixed deposits
Posted by Tushar Mathur on February 4th, 2010
In the past few months term deposit rates have lost sheen as banks have reduced rates. Now people prefer to park their money in current account savings accounts (Casa) rather than investing their money in fixed deposits for longer duration.
Banks low-cost deposits share drop to a 10-year low
Posted by Tushar Mathur on December 28th, 2009
In the recent times group of pubic sector banks has witnessed drop in their low-cost deposits, the drop is a 10-year low While individuals are preferring bulk deposits and more are depositing more money in fixed deposits, which offered higher interests a year ago.
Also, the opening of customer-savvy private sector banks is responsible for bringing down investments in low-cost deposits (savings and current account balances) at public sector banks.
This year public sector banks, savings and current account balances accounted to 31 per cent of their total deposits, which was 34 per cent in 1999 and was at peak of 38 per cent in 2066, as per the study conducted by Indian unit of London-based investment banking group, Noble.
But among the public sector banks there have been some of the exceptional banks like State Bank of India (SBI) and Bank of Baroda (BoB).
IDBI Bank, Central Bank announces cut in deposit rates by 0.25-0.5 per cent
Posted by Tushar Mathur on November 13th, 2009
Central Bank of India and IDBI Bank- two state-owned banks have slashed deposit rates by 0.25-0.5 per cent in various maturities in order to bring down the cost of funds.
Before country’s largest lender State Bank of India has reduced its deposit rates by a similar margin.
IDBI Bank revised rates will be effective from November 16 while the Central Bank has to yet announce the rate reduction officially.
After revision on one year to less than two years maturity deposits IDBI Bank offers a rate of 6.5 per cent as against 6.75 per cent, informed IDBI Bank sources.
On tenure 2 years to less than 1,100 days deposits, bank will offer rate of 7 per cent (7.25 per cent) while that of 1,100 days maturity deposits will now attract a rate of 7.25 per cent (7.5 per cent) earlier.
Moreover on 1,100-days to 5 years, 5-years to 7-years and 7-years to 10-years deposits bank will offer 7 per cent (7.25 per cent), 7.5 per cent (7.75 per cent) and 7.75 per cent (8 per cent) earlier, the bank said.
The bank said senior citizens will get 0.5 per cent above the card rate.
Banks close deposit rates to where they were five years ago
Posted by Tushar Mathur on October 21st, 2009
In the last few months the banks have slashed their deposit rates which have shrink depositors income. Banks have reduced interest rates (especially for deposits of up to one year) by about four percentage points in comparison to a year ago.
At present after the cut the deposit rates of 15 days to one-year period range from 3 per cent to 6.25 per cent per annum.
