After the Reserve Bank of India cut the repo rate by 0.50 percent, banks have started reducing interest rates on fixed deposits. Other banks may also take this step in the coming days.
HDFC Bank and ICICI Bank have cut their fixed deposit (FD) rates by 25 basis points (0.25 percent) in select periods. This step has been taken after the Reserve Bank of India (RBI) cut the repo rate by 50 basis points on Friday, bringing the repo rate down to 5.50%. After this step by both the banks, many more banks may cut interest rates on FD in the coming days.
ICICI Bank FD Rates
According to the information shared on the official website of the bank, the interest rate on fixed deposits of less than Rs 3 crore in ICICI Bank is in the range of 3%-6.6% for general citizens, and the interest rates for senior citizens are in the range of 3.50%-7.10%. The highest rate of 6.60% per annum for general customers and 7.10% for senior citizens is for a period of two years, one day to five years. The five-year tax saver FD is at an interest rate of 6.60% per annum for general customers and 7.10% for senior citizens.
How much change did HDFC Bank make
For HDFC Bank, the rates for FDs of less than Rs 3 crore are in the range of 2.75%-6.60% for general citizens, while for senior citizens it is in the range of 3.25%-7.10%. HDFC Bank has also revised the interest rates for fixed deposits of more than or equal to Rs 3 crore to less than Rs 5 crore. This is effective from June 10. Interest rates for general citizens are in the range of 4%-6.30% and for senior citizens in the range of 4.50%-6.80%.
People have been preferring fixed deposits (FD)
Earlier this year, data from the Reserve Bank of India (RBI) had revealed that people are preferring fixed deposits (FD). The growth of fixed deposits with attractive interest has surpassed the growth in current accounts and savings accounts (CASA). Its share in total deposits increased to 61.4 percent in September this year from 59.8 percent a year ago. Fixed deposits with interest rate of more than seven percent have increased to 68.8 percent, from 54.7 percent a year ago. According to the data, bank deposit growth stood at 11.7 per cent year-on-year in September 2024.
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