Banks Trim Deposit Interest Rates After RBI Repo Rate Cut
The Reserve Bank of India (RBI) cut the repo rate by 25 basis points. Following this, several major banks have reduced deposit interest rates. HDFC Bank, State Bank of India (SBI), and Bank of India are among the lenders that have revised their rates.
HDFC Bank
- Savings account interest rate:
- Up to Rs 50 lakh: 2.75% (down 25 bps)
- Above Rs 50 lakh: 3.25% (down 25 bps)
- Fixed deposit (FD) rates: Cut by 35-40 bps from April 1
State Bank of India (SBI)
- FD rates (from April 15):
- 1-2 years: 6.70% (down 10 bps)
- 2-3 years: 6.90% (down 10 bps)
- Senior citizens: 4-7.5% interest rate
Bank of India
- FD rates (from April 15):
- 91-179 days: 4.25% (down 25 bps)
- 180 days to 1 year: 5.75%
- 1 year: 7.05% (up 25 bps)
- 1-2 years: 6.75% (down 5 bps)
Other banks, such as Yes Bank and Bajaj Finance, have also trimmed their FD rates. The rate cuts reflect a broader trend of savers shifting from savings accounts to fixed deposits for better returns.
