FD Rates : The Reserve Bank of India (RBI) has recently cut the repo rate by 25 basis points. After this, the repo rate has come down to 6%. After the cut in the repo rate, many big banks of the country have reduced the interest rates on their fixed deposit (FD) schemes.
This list includes major banks like SBI, Bank of India, HDFC Bank, Yes Bank, Punjab National Bank and Canara Bank. This decision has been taken with the aim of increasing cash in the market by making the monetary policy more flexible.
SBI
State Bank of India (SBI) has cut interest rates on some of its FD schemes by 10 basis points from April 15, 2025. The interest rate on one year to two year deposits has now come down from 6.80% to 6.70% and on two year to three year deposits from 7.00% to 6.90%. However, senior citizens will get the benefit of additional 0.50% interest under the SBI We-Care scheme as before.
Bank of India
Bank of India (BOI) has also changed the interest rates. The interest rate on deposits of 91 to 179 days has been reduced from 4.50% to 4.25%. The rate on FDs of less than 180 days and one year has been reduced from 6.00% to 5.75%, while the interest on FDs of one to two years will be reduced from 6.80% to 6.75%. Along with this, the bank has also discontinued its 400-day special FD scheme, which earlier used to give 7.30% interest.
HDFC Bank
HDFC Bank has cut interest rates on long-term FD schemes by 35 to 40 basis points. Yes Bank has cut interest rates on FDs of 12 to 24 months by 25 basis points. Due to this, customers will now get less returns than before.
Punjab National Bank
Punjab National Bank (PNB) has also changed the interest rates and now the interest rate on its FD schemes is between 3.50% to 7.10%. The highest interest is being given on FD of 390 days.
Canara Bank
Canara Bank has also cut 20 basis points on some schemes, but its FD of 444 days is still getting 7.25% interest. Senior citizens are getting the benefit of 0.50% and super senior citizens are getting 0.80% additional interest. Experts say that due to the reduction in repo rate, interest rates in banks are decreasing rapidly. In such a situation, investors need to rethink their FD strategy.
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