Latest news with #Covid-19-affected
Economic Times
10 hours ago
- Business
- Economic Times
As deposit rates fall, banks turn to innovation to woo savers and stay competitive
With interest rates declining, banks face the challenge of attracting deposits. Experts suggest innovative products like fixed deposit-linked credit cards and sweep-in deposits are crucial. Younger savers are shifting to capital market products, while senior citizens favor government schemes. Banks are already adapting, but further rate cuts will necessitate more competitive offerings to retain depositors. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Banks will have to innovate to get fresh deposits as lower interest rates will make it more difficult to attract new savers, said investment experts. Products such as fixed deposit-linked credit cards, sweep-in deposits and savings bank-linked home loans will have to be marketed more as younger savers will continue to move towards capital market products like short-term debt funds, while senior citizens will be increasingly more dependent on government savings schemes , said bankers and investment be sure, banks already have products such as those with a monthly sweep-in to fixed deposits, home loans which take into account surplus balance in savings accounts and credit cards backed by fixed Shetty, CEO of an online financial marketplace, said banks have already taken the initiative. "We are seeing different kinds of products and with different kinds of banks also; rates wary. Like small finance banks offer a higher rate compared to the top commercial banks," he the deeper repo rate cut and liquidity likely to be released by the 1 percentage point cash reserve ratio cut, the fall in deposit rates will quicken, Shetty one-year fixed deposit rate offered by State Bank of India is likely to decline close to 6% from the current 6.5%.Some lenders like ICICI Bank have started reducing their bulk deposit rates. Retail deposits less than ₹3 crore will also be cut in the coming week, even as banks have already passed on the cut to their retail lending rate. Bank of Baroda , for example, will announce its revised deposit rates later this week. Ashok Chandra, CEO of Punjab National Bank , said the bank has initiated calculations on the quantum of deposit rate cuts which will be announced as per schedule on June rates had fallen after the sharp rate cut in the Covid-19-affected 2020 and 2021. Bankers said while it cannot be predicted how low rates will go, it is right to say that depositors will have to live with lower rates."With repo at 5.5% and ample liquidity in the system, it is fair to assume overnight rates at 5.25% which means one-year deposit rates cannot go above 6%. Savers who want a higher rate will have to most probably park their funds in riskier assets," said Rajiv Anand, deputy managing director, Axis Bank . "With money market rates coming down, the returns on mutual fund debt investments will also adjust. So depositors will have to adjust to a lower rate environment. The bet from the central bank's perspective is people will spend more, buy homes, cars and use their credit cards which will give the economy a push."For senior citizens, who need the security of their principal and also want a higher interest rate, the senior citizen savings scheme offering 8.2% currently is an option. But the scheme has a lock-in for five years and entails withdrawal penalties if money is taken out prematurely. Post office savings currently offer 6.9% for a one-year deposit, though those rates may also be revised after the rate said debt mutual funds are a good choice for all investors since they are both tax-efficient and liquid, especially when rates are on the way down.
CNN
24-03-2025
- Politics
- CNN
President Trump says he'll host Kansas City Chiefs at White House to celebrate 2020 Super Bowl victory
President Donald Trump said he plans to host the Kansas City Chiefs at the White House to celebrate their Covid-19-affected Super Bowl victory from five years ago. The Chiefs beat the San Francisco 49ers in Super Bowl LIV in February 2020 but were unable to celebrate fully – including the customary visit to the White House – because of the Covid-19 pandemic which was sweeping across the globe. But Trump says the team will finally be able to pose with pictures in the White House five years on. 'I look forward to having the (Philadelphia) Eagles (for winning Super Bowl LIX in February). And one other thing, we're going to have the Kansas City Chiefs after that, because they missed their turn because of Covid,' Trump told Clay Travis, the founder of sports website Outkick, during an interview aboard Air Force One. He did not give a date for the visit. CNN has reached out to the Chiefs to ask whether they had received an official invitation. If the Chiefs do celebrate with Trump this year, they will be the second team to do so along with the Eagles. Philadelphia beat the Chiefs 40-22 in this year's Super Bowl and after social media speculation suggesting the team would refuse the traditional visit, they officially accepted an invitation to visit the White House earlier this month. White House press secretary Karoline Leavitt said the Eagles' visit would happen on April 28. Back in 2018, Philadelphia decided not to celebrate the victory with Trump, who was in his first term in office at the time. The decision sparked a storm of criticism from the president, who falsely accused the Eagles of taking a knee during 'The Star-Spangled Banner' that year and disrespecting the National Anthem in other ways before uninviting the whole team. Regarding the 2018 incident, Trump said that while some players, coaches and the team's general manager wanted to come, the invitation was withdrawn amid the controversy. 'Some of the players wanted to come. And I just said, just forget it,' he recalled, before adding, 'I also had the problem with the San Francisco basketball team.' The previous year, the Golden State Warriors chose not to visit Trump in the White House after winning the 2016-17 NBA championship, with Trump also saying on social media that the invitation had been rescinded. 'They said, 'Well, we'll think about it.' I said, 'You don't have to think; you're uninvited,'' the president told Outkick.
CNN
24-03-2025
- Politics
- CNN
President Trump says he'll host Kansas City Chiefs at White House to celebrate 2020 Super Bowl victory
President Donald Trump said he plans to host the Kansas City Chiefs at the White House to celebrate their Covid-19-affected Super Bowl victory from five years ago. The Chiefs beat the San Francisco 49ers in Super Bowl LIV in February 2020 but were unable to celebrate fully – including the customary visit to the White House – because of the Covid-19 pandemic which was sweeping across the globe. But Trump says the team will finally be able to pose with pictures in the White House five years on. 'I look forward to having the (Philadelphia) Eagles (for winning Super Bowl LIX in February). And one other thing, we're going to have the Kansas City Chiefs after that, because they missed their turn because of Covid,' Trump told Clay Travis, the founder of sports website Outkick, during an interview aboard Air Force One. He did not give a date for the visit. CNN has reached out to the Chiefs to ask whether they had received an official invitation. If the Chiefs do celebrate with Trump this year, they will be the second team to do so along with the Eagles. Philadelphia beat the Chiefs 40-22 in this year's Super Bowl and after social media speculation suggesting the team would refuse the traditional visit, they officially accepted an invitation to visit the White House earlier this month. White House press secretary Karoline Leavitt said the Eagles' visit would happen on April 28. Back in 2018, Philadelphia decided not to celebrate the victory with Trump, who was in his first term in office at the time. The decision sparked a storm of criticism from the president, who falsely accused the Eagles of taking a knee during 'The Star-Spangled Banner' that year and disrespecting the National Anthem in other ways before uninviting the whole team. Regarding the 2018 incident, Trump said that while some players, coaches and the team's general manager wanted to come, the invitation was withdrawn amid the controversy. 'Some of the players wanted to come. And I just said, just forget it,' he recalled, before adding, 'I also had the problem with the San Francisco basketball team.' The previous year, the Golden State Warriors chose not to visit Trump in the White House after winning the 2016-17 NBA championship, with Trump also saying on social media that the invitation had been rescinded. 'They said, 'Well, we'll think about it.' I said, 'You don't have to think; you're uninvited,'' the president told Outkick.
