From Possible Rise In Term Insurance Premiums To Higher Emis On Sbi Credit Cards

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December 2021 is significant from a personal finance point of view as a bevvy of changes will come into effect this month ranging from a possible hike in term insurance premiums to a rise in SBI credit card EMIs. The interest rates on PNB’s savings account also see a drop this month.

Here’s a list of major changes that either is taking place or may take place this month:

Term life insurance premiums to get costly soon

As claims have increased lately, life insurance companies are likely to pass on the surge in reinsurance premiums to the policyholders which might increase the premiums for term life policies. The rise in re-insurers premium is primarily due to an increase in mortality rate during the COVID-19 pandemic. Thus, with the increase in the reinsurers’ premium rates, insurers may raise the premium of term life insurance policy for buyers.

Also, there has been an increase in demand for term life products and life insurers over the last few months and insurers are re-assessing the pricing.

SBI credit card users to pay higher EMIs

State Bank of India (SBI), India’s largest bank, will be charging its credit card customers a fee of Rs 99 plus taxes on all EMI purchases from this month. The processing fee will be charged at merchant outlets, e-commerce websites and apps when making payments through SBI credit cards.

“Dear Cardholder, We would like to inform you that with effect from 01 Dec 2021, Processing Fee of Rs. 99 + applicable taxes will be levied on all Merchant EMI transactions done at merchant outlet/website/app. We thank you for your continued patronage. Please click here to know more about Merchant EMI Processing Fee,” read a mail from SBICPSL to its cardholders that were sent on November 12.

The processing fee will be above and beyond the interest and payments and will be reflected separately in the credit card statements.

PNB reduces interest rates on savings account

Punjab National Bank (PNB) has reduced the interest rate on its savings account for balances below Rs 10 lakh to 2.80 percent per annum this month. The bank has also reduced the interest rates on savings account for balances above Rs 10 lakh to 2.85 percent.

HDFC, Bajaj Finance hikes interest rates on term deposits

After the latest revision, HDFC will offer 6.25 percent on 33-month deposits, 6.7 percent on 66-month deposits and 6.8 percent on 99-month deposits. It will continue to offer an additional 0.25 percent for senior citizens and 0.1 percent more for online deposits.

Bajaj Finance, meanwhile, raised interest rates by 30 basis points or 0.30 percent for deposits of duration between two years and five years, for both regular income as well as cumulative options. For deposits of up to Rs 5 crore with a tenure between 24 months and 35 months, it will now pay 6.4 percent per annum under the cumulative option. It will pay 6.8 percent per annum for deposits of between 36 months to 60 months.

(Edited by : Abhishek Jha)

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