Fixed deposit interest rates

What will happen to fixed deposit interest rates if home loan interests rates are lowered in India to the tune of 2-3% per annum?

Replies (2)

All financial factors are related to one another. If one factor is changed, all other percentages automatically get affected. If the home loan interest rate is lowered by 2-3% per annum, it indicates that inflation has increased.

So to control the situation RBI will increase the repo rate (the rate at which banks borrow money from RBI). This in turn, will force the banks to reduce the fixed deposit interest rate.

So, if you have to pay less interest rate at home loan, you will also get less interest in fixed deposit.

Roy, 

Niw banks moved to MCLR frim april 16 onwards.one of the main component of MCLR is marginal cost if funds.Banks have mclr fir 14 days monthly, half yearly, yearly

The lending rates are connected with the 

1,Deposit cost

2,CRR impact

3,tenor premium

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 July 2026
Article internship

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Follow