5 replies on this article “Why interest rate changed in FD rates for 6 months 1 day and 6 month 2 days in IDBI bank ?”

1. Manish Chauhan says:

   April 2, 2014 at 4:16 pm

   There is no specific reason for this , At some point they need to increase the interest rate for some duration, and one is free to make X days FD, so there will always a point when they need to increase it .

   Reply
2. ashalanshu says:

   April 2, 2014 at 12:49 pm

   Dear Niki, every bank do this to segregate the terms of FDs and thus asset liability.

   Thanks

   Ashal

   Reply
3. ronniejoshua says:

   April 1, 2014 at 1:29 am

   Interesting!!
   Conjecture: The Banks make the relatively lesser profit lower end of the tenure given an interest rate than at the upper end of the tenure. I think this follows a quadratic function. But what is interesting they pay 1.1% extra if you hold for 3- more days!! Will definitely search for this- The tenure & Interest rates!!

   Reply
   1. niki says:

      April 2, 2014 at 11:31 am

      Not for 3 more days. Just for 1 more day. Still has not got my answer. why they do this?

      Reply
4. ashalanshu says:

   March 31, 2014 at 11:21 pm

   Dear Niki, banks are free to given interest rates for different time bands as per their choice by RBI. As a customer, it’s our choice to opt the term of FD as per our need.

   Thanks

   Ashal

   Reply

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