You must Sign In to post a response.
  • Category: Miscellaneous

    Will the deposit rates go up at all?

    The single greatest achievement of our BJP Government, at least as per their claims, is that inflation has come down. However, in the name of GST, every single item of daily use is going up through the roof. There is nothing that is coming down and the official rate of inflation is itself more than five percent. There are many experts who opine that the retail rate of inflation is the actual rate of inflation. If so, the actual rate of inflation will be very high.

    When Dr Subba Rao was the RBI Governor, he in fact recommended that banks should give higher rate of interests on deposits when inflation shot up. But what we get under this BJP rule is a pittance of just 6.5 or 6.75 percent. The so-called scheme for pensioners also has just 8 percent interest.

    For senior citizens, if the Government wants to do something, the rate of interest on deposits should be 9 percent. Otherwise, we will just not be able to make both ends meet.

    The question is: will the Government do it?
  • #643328
    Over the recent past the rate of interest through banks are kept deliberately low and the senior citizens who only believe in the banks are not finding the deposits fetching. For example if a deposit of 2 to 3 lakh is made, a pittance of interest is paid to the pensioner which is not even 2000 rupees. Just imagine if all the seniors want to get rid of the banking transaction as they are meekly paid, then the entire banking system would collapse. As suggested by the author the seniors must get 9 percent interest, so that they can lead their lives with containment and happiness.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #643330
    Although I am in favour of a higher interest rate, I do know that 9% p.a. return from fixed instruments is a little bit unrealistic. This is not fulfilled under the present circumstances. And the lowering of interest rate basically started at the time of Mr. Chidambaram, the former Finance Minister.
    Non-violence is the greatest Dharma; So too is all righteous violence.

  • #643375
    The interest rates can be low provided the essential commodities are at reasonable prices. But these days rates are increasing and the interest rates are coming down. As mentioned by the author many of the senior citizens especially the retired employees from private organisations are suffering a lot. They are not able to venture into stock markets with their limited resources with a fear of losing the money and they are not able to go well with the money they are getting from the fixed deposits. At least the government can think of waiver of income tax for the interest these senior citizens are getting through their fixed deposits. It will be very beneficial to the senior citizens, I feel.
    drrao
    always confident

  • #643379
    In the present scenario it's hard to think of higher interest rates. The economy seems to be progressing only on paper, but reality shows something different. Let alone the price of petrol or diesel, the cost of essential commodities are on the rise and the government is unable to put in effective measures to stop the price rise.

    During demonetization, everybody deposited their old notes and the banks are paying interest on those huge deposits, which may be a cause of lowering the rates. At present, the market is sluggish and not much new projects are coming up, the banks also need capital infusion which may boost investment to some extent. In that case, we expect the government to think of increasing the deposit rates at least for senior citizens, though not sure. But lastly, I would say the government may be thinking of some kind of sops for seniors keeping in mind the general elections 2019.

    Sankalan

    "Life is easier when you enjoy what you do"

  • #643380
    The interest rates are time to time changed and fixed by RBI through its monetary policies and guidelines to the banks.

    Basically these are related to inflation rate and other economic factors. So far after the present Govt's taking up the charge, the interest rates have gone down drastically.

    Now depending upon the economic situation in the future, RBI will revise these rates.

    There is already an uptrend in them as some banks have already increased the interest rates slightly upward.

    Knowledge is power.


  • Sign In to post your comments