Starting last week of October, top banks have been revising their lending and deposit rates. Besides cutting the lending rates, on 24 October, SBI also slashed the interest rate on its fixed deposits (FDs). SBI’s rate cut is an indicator that the deposit and lending rates are set to fall further in the banking industry. Remember, fixed rate loans are usually more expensive than floating rate loans and come with other charges as well as prepayment penalties. SBI cutting interest rates on FDs to 6.50% on most tenures, is an indicator that rates on deposits may fall further.

Source: Mint November 02, 2016 10:40 UTC