Depositors to earn less as banks cut FD, savings a/c interest rates

Banks attempt to protect thinning margins

- BENN KOCHUVEEDAN @ Mumbai

BANK customers, especially those who depend on interest income, will now earn less on their deposits as banks are reducing their rates on fixed deposits, as well as savings accounts.

The move comes after the RBI slashed interest rate for the second consecutive time by 25 basis points last week to 6%. Since February, repo rate has come down by 50 bps. The measure by the second-largest lender HDFC Bank over the weekend comes in its bid to protect the margin.