State Bank of India (SBI) has increased its fixed deposit (FD) interest rates, with effect from February 15, 2023. SBI customers can earn up to 7% on their deposits, while senior citizens can earn up to 7.5%.
With the revision, a three-year time deposit with post offices would earn 5.8 percent from the existing 5.5 percent, an increase of 30 basis points for the third quarter of the current financial year.
The move the Fed announced after its latest policy meeting will increase its benchmark short-term rate, which affects many consumer and business loans, to a range of 1.5% to 1.75%.
The Consumer Price Index (CPI) based inflation, which RBI factors in while arriving at its monetary policy, is on the rise since October 2021.
The revised interest rates on bulk term deposits amounting to Rs 2 crore and above are effective from Tuesday, the bank said.
On what changed since April 8 -- when the last scheduled policy meet decided to maintain status quo -- and May 4, the source said the inflation print at near 7 per cent for March came way above RBI's expectations, and the momentum is likely to continue in April as well.
Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively, in the first quarter.
Amid fears of a third wave of coronavirus pandemic and hardening of retail inflation, the Reserve Bank is likely to maintain status quo on interest rate and watch the developing macroeconomic situation for some more time before taking any decisive action on monetary policy.
The government on Wednesday reduced interest rates on small savings including PPF, one-year time deposit, senior citizen savings schemes. The changes will be effective from April 1, 2021.
Kotak Mahindra Bank (Kotak) on Thursday announced that it has reduced its rate on home loans by a further 10 basis points (bps) to 6.9 per cent per annum.
Interest rate waivers for bank loans during moratorium will harm the depositors, the All India Bank Depositors' Association (AIBDA) has said adding that interest waiver of any kind will dent the credit culture and also impact the financial health of banks.
The government has decided to withdraw 7.75 per cent Savings (Taxable) Bonds scheme from the close of banking business on Thursday due to declining interest rates.
Private sector lender ICICI Bank on Wednesday cut interest rates on savings accounts by 25 basis points for deposits up to Rs 2 crore. The new rates will be effective from April 8, ICICI Bank said in a regulatory filing. Savings bank accounts with deposits up to Rs 50 lakh will earn 3.25 per cent interest as against existing 3.5 per cent.
Former Union Finance Minister P. Chidambaram has slammed the government for reducing the interest rates on small savings and PPF and said it may be "technically correct but it's wrong time" as the country is amid lockdown due to fear of Covid-19 and people have no way of income.
As per the fresh rules mandated by the Reserve Bank of India, all financial institutions in India must now link their new home loan prices to a new external benchmark, namely the MCLR. This new regulation was implemented at the tail end of RBI’s 5th consecutive repo rate cut for FY2019. With these fundamental shifts in lending, home loan interest rate is expected to become much cheaper for borrowers in the near future.
The RBI Monetary Policy Committee (MPC) reduced repo rate by 25 basis points on Friday to 5.15 per cent and decided to maintain the accommodative stance "as long as it is necessary to revive growth while ensuring that inflation remains within the target".
EPF users alert: Government of India has finally made it official that crores of beneficiaries of Employee Provident Fund (EPF) would get an increase in the interest rate for their provident fund money. Union Labour Minister Santosh Gangwar announced the decision on Tuesday which said EPFO would now provide a 8.65 per cent interest rate on employees provident fund for 2018-19.
The government on Thursday approved 8.65 per cent interest rate on employees provident fund for 2018-19, news agency PTI quoted sources as saying. Over 6 crore EPFO subscribers are set to benefit with this move. Amounts will be credited to the accounts of these EPFO members.
PF money withdrawal: There's great news for people with provident fund money (PF Money). The Employees' Provident Fund Organisation (EPFO) has approved 8.65 per cent interest rate. The existing interest rate was 8.55 per cent.
RBI on August 7, had cut benchmark repurchase and reverse repurchase rates by an unconventional 35 bps, slightly higher than market expectations of a 25 bps cut. Given that the extent of monetary easing in 2019 year-to-date still appears to be insufficient in lifting economic activity, Fitch Solutions now expect the RBI to cut its policy interest rates by a further 40bps by end-March 2020
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