FD interest rates: There is a trend of decline in the interest rates of FD in 2025. The major reason for this is the monetary policy of RBI. RBI started reducing the repo rate. After this, banks are also reducing the interest rates on FD.
FD interest rates: If you are thinking of investing money in bank fixed deposit (FD), then the news is not good for you. There is a trend of decline in the interest rates of FD in 2025. The major reason for this is the monetary policy of RBI. RBI started reducing the repo rate. After this, banks are also reducing the interest rates on FD. RBI has reduced the repo rate twice this year. It first reduced it by 25 basis points in February. Then in April it reduced it by 25 basis points. With this, the repo rate has come down from 6.5 percent to 6 percent.
SBI has reduced interest rates twice
State Bank of India (SBI) is at the forefront in reducing interest rates on FDs. It has reduced the interest rates of FDs of different tenures by 20 basis points. This reduction has come into effect from May 16. SBI had also reduced the interest rate on FDs on April 15. Other banks have also reduced interest rates on FDs. Due to this, the interest rate on 7-45 day deposits of more than Rs 3 crore has come down to 3.3 percent. Earlier it was 3.5 percent. Interest rates on long-term FDs have come down to 6.7 percent, which was earlier 6.9 percent.
Interest rates of special scheme ‘Amrit Vrishti’ also reduced
Senior citizens get more interest on FDs. Earlier they used to get interest between 4 to 7.5 percent on FDs. Now they are getting 7.3 percent interest on FDs of 5-10 years. SBI has reduced the interest rate from 7.05 percent to 6.85 percent for a period of 444 days in its special scheme ‘Amrit Vrishti’. For senior citizens, it has been reduced from 7.55 percent to 7.35 percent. For super senior citizens, it has now become 7.45 percent.
HDFC Bank has reduced 50 basis points
Other banks have also reduced interest rates on FDs. HDFC Bank has reduced interest rates by 50 basis points on FDs of select periods. Now the bank is offering an interest rate of 3 to 7.1 percent to general customers, while offering a rate of 3.5 to 7.55 percent to senior citizens. These rates are for deposits of less than Rs 3 crore.
ICICI Bank and Axis Bank also gave a shock to customers
ICICI Bank also announced a reduction of up to 50 basis points in FD interest rates on April 17. Currently, it is offering 3 to 7.05 percent interest on FDs to general customers and senior citizens. Axis Bank has also reduced the interest rate on FDs. Now the bank is offering 3 to 7.55 percent interest on FDs of less than Rs 3 crore.
Senior citizens face the most problems
Many people in India, especially senior citizens, still prefer to keep money in bank FDs. They find it the safest. Many senior citizens depend on the interest received from FDs for their essential expenses. Due to the reduction in interest by banks, their interest income will also decrease. This can be understood with an example. Due to reduction in interest rate by 20 basis points by SBI, senior citizens will now get Rs 1,000 to Rs 2,000 less interest income annually on a 5-year FD of Rs 5 lakh.
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