Interest Rates of Commercial Banks to Remain Unchanged for the Month of Falgun

Commercial banks will maintain the same deposit interest rate during the month of Falgun.

The interest rate on fixed deposits for commercial banks which had been lowered in the month of Magh has been kept constant for the month of Falgun.

The Bankers Association had consented to lower the interest rate from Magh to 11% for individuals and 9% interest rates for institutions. These rates shall be kept constant for the month of Falgun.

Prior to this change, banks maintained term deposit interest rates at 12.133 percent for individuals, 10.133 percent for institutions, and 13.133 percent for remittances. Remittance interest rates as high as 15% had been provided by some banks.

On the other hand, National level development banks had chosen to cut the interest rate by 0.85 percent in Magh and retain a maximum of 12 percent for individuals, 10 percent for institutions, and 13 percent for remittances in Magh. These rates have been further reduced by 0.25 percentage points. Now for the month of Falgun, the development banks, which were giving 12 percent interest on personal term deposits till Magh, will now give a maximum interest of 11.75 percent.

Likewise, most of the development banks are providing an average saving interest rates of 8%-9.25% in month of falgun.  (Note: Such saving rates higher than 7% are mainly dependent upon the type of schemes the banks are providing).