CHENNAI: Self-employed professional T Mukund hasn't decided what to do with the Rs 10 lakh in his savings bank account . "I have opted for the sweep-in facility, where the amount over a certain level is automatically transferred to a deposit that earns higher interest . The RBI has hiked rates 13 times so far. I am expecting further increase in rates so I am not shifting my funds," he says. Mukund is not likely to be disappointed with banks bringing introducing new product features for customers with deposits over Rs 1 lakh. Deregularisation of interest rates on saving deposits and a differentiated interest structure for amounts below and above Rs 1 lakh will result in further rise in the average balance in accounts. Private banks like Yes Bank have already raised their interest rates on deposits to 6%. Kotak and IndusInd are close behind at 5.5% for up to Rs one lakh and 6% for deposits over one lakh. Further impetus will happen when nationalised banks start unveiling new features. "We will be offering multiple products under our saving bank portfolio soon," says K R Kamath, chairman and managing director , Punjab National Bank.
TOI
