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Fixed deposit rates can be lower than Savings Bank rates

Recently I decided to place a short term deposit with one of the foreign banks using my online internet banking facility. I chose 30 days option and placed the deposit without finding out what the interest rate would be. To my utter surprise it turned that the bank was paying an interest rate of 2.5%. I can't believe this because effective April 1, 2010 all banks have to pay SB account interest of 3.5% on a daily balance basis. So I went by the assumption that instead of leaving the money in SB account, I moved to a Fixed deposit and ended up earning less than the SB account. So be aware of the interest rates before opening FD's online.

Now as the Fixed Deposit has been opened with automatic renewal option, the deposit has got auto renewed for the second time as well. I need to really pull up my socks and ensure that it doesn't gets renewed for the second time.

1 comment:

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