Withdrawing a big amount from the saving account even a few days before the month end, results in loss in interest the month. Now Greetings for saving account holders from RBI (Reserve Bank of India), who announced on this Friday that banks should start calculating interest on daily basis for saving accounts effective from 01st April'10.The move will enable saving account holders in earning better interest rates since banks currently calculate interest on these accounts on the lowest available balance from 11th and the last date of a month.
Though, earlier banks had urged RBI to postpone the move. Indian Banks Association chairman MV Nair had said "We requested them to either reduce the savings rate or postpone the implementation. It will affect our margins and profit"
RBI said in a notification "We advise that payment of interest on savings accounts may be made by banks on a daily product basis with effect from April 1", which also asks banks to ensure a smooth transition and work out the modalities in this regard.
Now, one point need to be noted here that, currently interest rates on saving accounts are de-regulated, barring up to Rs 2 lakh. The RBI only administer interest rates on saving bank deposits up to Rs 2 lakh, and for the deposits above this amount, banks are free to give any interest rates.
Source
http://beta.profit.ndtv.com/news/show/now-savings-accounts-to-earn-interest-on-daily-basis-26569
No comments:
Post a Comment