RBI cuts repo rate: What it means for your FDs

Business Dec 05, 2025

The RBI just lowered its repo rate by 0.25% to 5.25%—the fourth cut this year—to help boost the economy.
But here's the catch: banks are now likely to drop their fixed deposit (FD) interest rates, which isn't great news if you count on FDs for steady returns.

How does this affect you—and what can you do?

With FD rates set to dip, both regular investors and seniors might see smaller returns.
If you want to make the most of your savings, consider locking in a longer FD tenure now or spreading your money across different time periods ("laddering").
Seniors can also look at options like corporate FDs or debt mutual funds for possibly better returns, but it's smart to weigh any risks before making a move.