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Interest rates

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Rajashekhar

Rajashekhar (Querist)
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11 June 2013 why interest rates are low in long run for FD 's i.e

2-3yr-8%
3-4yr 9%
4-5yr 8.5%

i have observed in many banks....
plz any one can explain.....

Anil Sankar V

Anil Sankar V (Expert)
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11 June 2013 you have concept of compund interest

Rajashekhar

Rajashekhar (Querist)
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11 June 2013 i cant get you....can you explain elaborately.....

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 August 2013 while long term, outgoing interest cost(amount) for the bank will be more so rate is less

In shorterm the out going interest (amount is less)

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