Savings account interest rates see sharp drop. Do you really need one?
Last Update Date: 06-10-2026
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar said savings accounts should be used for bills and monthly expenses, with one to two months of expenses kept there. He suggested moving the rest to FDs or debt mutual funds based on risk appetite, noting that debt fund gains are taxed only on redemption.
More of Abhishek's views on saving and deposits
The article looks at falling savings account interest rates after RBI policy rate cuts in 2025. It explains that idle money earning below inflation loses value, and discusses keeping a savings account for daily needs while moving surplus money to other debt options based on the time horizon.
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Savings account interest rates see sharp drop. Do you really need one?