Interest rates on short-term deposits are now lower than the savings bank rate.
ICICI Bank was the first to lower the interest rate on fixed deposits of 15-45 days below the administered savings bank rate of 3.5 per cent.
Effective tomorrow, account holders at ICICI Bank with fixed deposits of 15-45 days will earn a 3 per cent interest, which is 50 basis points below the savings rate. Deposits of 46 days to two months will earn a 3.5 per cent interest, which is at par with the savings bank rate. More banks are likely to follow suit.
