saving account interest rate: Will savings account interest rate rise to 4% after RBI's push? Focus on MPC
Bank customers have been getting one of the lowest interest rates on deposits specially on smaller deposits held in their saving account often in the range of 2.7% to 3%. These rates have largely remained stagnant despite a 2.5% hike in repo rate. As per media reports RBI has been uncomfortable with this and hinted banks to raise the rates. On the other hand, the interest rate on post office saving account has remained unchanged at 4%. Will the central bank push lead to an overall rise in interest rate on saving bank account?
Source: indiatimes.com