Deregulating Savings Rates

The deregulation of the savings account interest rate by Reserve Bank last week has been hailed as great news for bank customers. On the 25th, there was no shortage of headlines proclaiming this as Mr. Subbarow's Diwali gift for everyone who has a savings account, which means everyone. At least one bank announced a big leap in its savings rate within hours of the RBI's announcement. However, all those who watch their savings and investments carefully were likely to have been left underwhelmed by this news. For bank customers, the increase in actual interest income is irrelevant. This is likely to be true of all bank customers, from the poorest to the richest. If you are the kind of bank customer whose savings account has

This article was originally published on November 02, 2011.