Yes Bank has announced the sharpest cut in savings rates, bringing down the return on accounts with balances of up to Rs 1 lakh to 5 per cent from 6 per cent.Company SummaryNSEBSEYes BankLoading data…
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PEER COMPANIES Hey there! This is Saloni Goel with ETMarkets’ special weekend podcast.
Interest rates are clearly on their way down. State Bank of India recently slashed interest rate on bank savings to 3.5 per cent. Fixed deposit rates are still around 6.25 per cent for most people, but are surely heading lower. HDFC Bank and Yes Bank were the latest to reduce interest rates on savings bank accounts taking the lead of the country’s largest lender.
Yes Bank has announced the sharpest cut in savings rates, bringing down the return on accounts with balances of up to Rs 1 lakh to 5 per cent from 6 per cent. The bank has maintained 6 per cent return that it offered customers with deposits between Rs 1 lakh and Rs 1 crore, while reducing the rate on deposits above Rs 1 crore to 5.5 per cent from 6 per cent earlier.
Individuals park a big chunk of their money in savings accounts as well as fixed deposits and for them falling interest rate is a problem. Is there a solution? There indeed is. There are mutual fund products that fit the bill perfectly.
We have with us Lakshmi Iyer, Chief Investment Officer (Debt) and Head Products, Kotak Mutual Fund, to share her views on what a small investor can do when interest rates fall.
Byte: Lakshmi Iyer
That’s all for today. Do come back for our special weekend podcast next Saturday and check out our daily market podcasts every morning and evening only on www.ETmarkets.com