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  • Interest Rate Change: 3.html/print/ 11/19

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    Invincible Balu
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    There are three main types of bank accounts: current accounts with 0% interest, savings accounts with 4-6% interest, and term deposits with interest rates depending on the length of deposit ranging from 6-8%. Banks prefer current and savings accounts (CASA) because they can lend money from these accounts at higher interest rates of 12-18% and make large profit margins. While deposit rates paid to account holders are controlled by the Reserve Bank of India, lending rates charged to borrowers have been deregulated by RBI since 2012.

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    There are three main types of bank accounts: current accounts with 0% interest, savings accounts with 4-6% interest, and term deposits with interest rates depending on the length of deposit ranging from 6-8%. Banks prefer current and savings accounts (CASA) because they can lend money from these accounts at higher interest rates of 12-18% and make large profit margins. While deposit rates paid to account holders are controlled by the Reserve Bank of India, lending rates charged to borrowers have been deregulated by RBI since 2012.

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    5 views1 page

    Interest Rate Change: 3.html/print/ 11/19

    Uploaded by

    Invincible Balu
    There are three main types of bank accounts: current accounts with 0% interest, savings accounts with 4-6% interest, and term deposits with interest rates depending on the length of deposit ranging from 6-8%. Banks prefer current and savings accounts (CASA) because they can lend money from these accounts at higher interest rates of 12-18% and make large profit margins. While deposit rates paid to account holders are controlled by the Reserve Bank of India, lending rates charged to borrowers have been deregulated by RBI since 2012.

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    There are mainly three type of bank account: Current Account Interest paid by bank 0% Savings account 4-6*%

    Term deposits/Fixed Deposit Depends on how long you keep the money. 6-8*%

    These rates change from bank to bank, ^these are just approximate numbers for illustration. For banks Current account and savings account (CASA) are most important. Why? Because on these deposits, bank has to pay very low interest. So if bank gets lot money from CASA source, and lends it as car/bike/home/business/personal loans @12 -18% =there is big profit margin.

    Interest rate change


    Deposit rates (bank pays to accounts holders) RBI control s the interest rates on foreign currency non-resident Lending rate (bank charging to loan takers) 2012: RBI deregul ated the interest rate on loans given to

    mrunal.org/2013/04/economic-survey-ch5-financial-intermediaries-banks-rrbs-nbfcs-part-3-of3.html/print/

    11/19

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