New Delhi: The Reserve Bank of India or RBI has decided to deregulate the savings bank deposit interest rate with immediate effect.
This means customers can expect to earn a higher rate on their deposits.
Currently, the savings rate is at 4%.
Banks are free to determine their savings bank deposit interest rate, subject to two conditions. Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit. Secondly, for savings bank deposits over one lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.
This means customers can expect to earn a higher rate on their deposits.
Currently, the savings rate is at 4%.
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