Fixed deposit interest cut - More reason to invest in Unit Trust!!

PETALING JAYA: Ten banks have reduced their fixed deposit (FD) rates following Bank Negara’s recent cut in the key interest rate.
More are expected to follow suit over the next few weeks, an official from the Association of Banks said.
The central bank had on Nov 24 lowered the key interest rate known as the overnight policy rate (OPR) by 25 basis points to 3.25% to further support economic activities.
> From Nov 25, the minimum rate set by Bank Negara for 12 months fixed deposit is 3.5% per annum. The minimum rate set for a one-month fixed deposit remains at 3% per annum.
> Several banks have not cut their base lending rate (BLR), which is calculated based on the OPR, but are expected to do so next week.
> Interest rates for consumer loans, which are pegged against the BLR, will be reduced accordingly.
> With the reduction in FD rates, some banks are planning to run promotions to attract depositors.

Source : The Star, 5th December 2008