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  • Category: Miscellaneous

    Can we see some change in the interest on deposits at least now?

    For various reasons, the economy of the country is not in a good shape. The price of petrol is likely to touch Rs.100 within the next twenty days at this rate. Even the ordinary share auto guys have happily raised the rates by Rs.5 even for the shortest distances, putting the lower middle class to huge hardship. Since they always travel by shared autos, they really feel the pinch.

    The inflation is already high., The deposit rates were raised a few months ago, but this raise is never equal to the inflation. The Government claims on inflation is absolute trash. The real inflation is the retail level. Everything is going through the roof.

    At least now, will the interest rates on deposits see an upward climb? If it does not, the middle classes and the poor will suffer so much. The senior citizens will lead very ordinary lives. They are already into the worst hardships ever.
  • #648442
    Interest rate changes too will pinch the common man only. Who takes home loans, automobile loan and personal loans?

  • #648445
    Interest rates depend on the inflation and other economic factors. Generally, they go up and down in accordance with the economic conditions.

    Govt gives it's employees time to time pay revisions to compensate for inflation but in private sector no such one to one relation is there.

    Interest is only one partial mechanism for tackling inflation. Until unless the earnings of people is increased there is no way to deal with inflation.

    Middle class and lower class have always to take the brunt of these factors.

    Knowledge is power.

  • #648459
    All of a sudden the interest provided by banks and other government organization gone less few months back and that is still maintaining. Elders are not having faith on banks as their hard earned money invested in banks are not fetching great interest. Hardly for 10 lakh investment in bank they are getting 6500 per month and the elders used to get pension more than that. There are enterprising elders who are taking risk to give their money on interest to private business persons on good interest. But that is great risk and only known people can deal that way. It is the high time government consider hiking interest rate.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #648464
    Senior citizens, for example, should be given higher rate of interest it should be one percent more than the normal rate. Those who take house loans and so on, have regular incomes that can still support them. In fact, their wives are also normally employed and they even have some disposable money that they use to quickly repay the loans. However, the senior citizens have nothing. Rising costs of medical care can completely wipe away all the savings. Hence, when the inflation has gone through the roof, it is absolutely irrational and even stupid to hold on to the old rates of interest on deposits for anyone and, senior citizens in particular.

  • #648532
    I don't think the RBI is planning any change in the interest rate within the next few months. Though the interest rates are revised periodically, based on inflation and few other factors, this time the economic condition is facing a crisis. Though the government is indicating otherwise, based on different studies, but the reality is known to the common man who is facing the hardship. The election is round the corner, the government has to keep their employees happy and moreover they may announce some sops keeping in mind the recent price rise in essential commodities. The soaring fuel prices and the slump in rupee against dollar has kept the economy in a tight spot, so increasing interest rate on deposits may not solve the problem, though it is a good proposition keeping in mind the inflation rate, the government must device some other ways like reducing excise duty and VAT to combat this steep rise.

    "Life is easier when you enjoy what you do"

  • #648567
    The present interest rates are very low when compared to the interest rate for the borrowings by the individuals. It is true that RBI is monitoring and changing the rates from time to time. But with the rise in the essential commodities rates, the levels of expenditures are increasing. So the money kept in the bank is losing its value. The interest rates should take care of the inflation rates so that the deposited money will not lose its original value. RBI should think in this direction and should make an upward revision in the rates of interest.
    always confident

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