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Jun 13, 2025
Major banks lower fixed deposit rates post RBI's repo cut
After the RBI trimmed its repo rate by 0.5%, major banks have dropped their fixed deposit (FD) interest rates. This move affects both how much you earn on savings and what you pay on loans, all part of a bigger push to boost economic activity.
TL;DR
How much banks are now offering
Private banks like HDFC and ICICI now offer 6.25% on one-year FDs for regular customers, with seniors getting 6.75%. Public sector players like Union Bank now give 6.60% (regular) and 7.10% (seniors) for a year-long FD.
Impact on consumers
If you're hoping to grow your savings through FDs, these lower rates might sting a bit. But the upside? Cheaper loans could make borrowing more attractive, which is exactly what the RBI wants—to get people spending and businesses investing again.