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Interest rates on your term deposits may not immediately go up in site of the Reserve Bank of India increasing the repo rate by 25 basis points.
Banks feel that the interest rates on term deposits have already peaked and there is no scope for further increase.
“No transmission of hike in repo rates is possible now in the case of term deposits as the interest is already high,’’ Ms Archana S. Bhargava, Executive Director, Canara Bank, told Business Line on Tuesday.
Mr P. Eashwar Das, MD & CEO of Catholic Syrian Bank, also sees no possibility of immediate increase in term deposit rates.
The interest on savings bank accounts, however, may inch up by about 100 basis points due to deregulation of interest rates, he feels.
“Only High Networth Individuals (HNIs) may stand to gain as they are likely to have more than Rs one lakh balance in their SB accounts,’’ he said.
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