Since interest rates on term deposits are already free, the effect of liberalisation of rates on savings deposits are expected to be marginal and manageable.
The individual development accounts also match your savings deposits when you're working toward a long-term goal, such as owning a home or opening a business.
A widening difference in the interest rates on time and savings deposits induced portfolio adjustments, thereby luring depositors to the more attractive savings deposits.
By contrast, state-chartered institutions emphasized serving individuals and families by accepting savings deposits and making loans for personal and home financing.
