Banks are cutting interests rates on savings account, what an investor should do ?

Banks are now cutting savings interests rates as money is with them without any hassel to attract the depositors.


Since October 2011, most banks barring few private banks were offering interest rate of 4 percent in these savings accounts. However, recently, banks have started reducing interest rate on savings account.

The first salvo was fired by none other than the country's largest bank. On 31st July, 2017, State Bank of India slashed its interest rate on savings account deposits by 50 basis points to 3.5 per on balance of Rs 1 crore and below. Subsequently, eleven more banks have reduced the savings bank account interest rate and more could be expected to follow soon.

Here are some of the banks that have reduced rates from the earlier rate of 4 percent for most deposits. 


As the case depicts the situation that it is not worthy to keep the money idle with the savings account instead parking with some prudent options keeping aside the 6 months household expenses in savings account and out of which 3 month expenses should be in liquid fund to generate handsome returns.


posted by,
Saket kumar singh (Founder)
Lakshya wealth services

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