After RBI’s rate cut, interest rates on FD and savings accounts decreased, these banks made major changes – Fixed Deposits and Savings Accounts HDFC SBI Kotak Banks Have Reduced Interest Rates
After RBI’s rate cut, interest rates on FD and savings accounts decreased, these banks made major changes – Fixed Deposits and Savings Accounts HDFC SBI Kotak Banks Have Reduced Interest Rates
The country’s largest lender, SBI, has cut FD interest rates up to 75 basis points for several periods. The new rates are effective since 15 June 2025. Now the FD with a duration of 7 days to 10 years will get interest from 3.50% to 6.50% for the general public. Senior citizens will continue to get 50 BPS more on select periods. SBI has also reduced its savings account interest rate from 2.70% to 2.50% for all balances.
Following the recent monetary policy of the Reserve Bank of India (RBI), many banks have amended their fixed deposit (FD) and savings account interest rates. These changes indicate changes in the interest rate cycle, in which most large banks have reduced rates on select periods. Let’s know about the major amendments announced by State Bank of India (SBI), HDFC Bank, ICICI Bank and Kotak Mahindra Bank.
Recently, on 6 June 2025, RBI has reduced the repo rate to 5.50% in its monetary policy review to 5.50%. After this change, banks have started cutting deposits, as they usually adjust the deposit rates in accordance with the change in policy rates.
Kotak Mahindra Bank has amended interest rates on FD of less than ₹ 3 crore, which are effective since June 12, 2025. The revised rates are now between 2.75% to 7.25%. The maximum interest rate on 390 days deposit is 7.25%. Other periods have seen a cut of 5 to 15 BPS
The recent cuts made by RBI have started to show impact on the returns on the deposit. Banks usually adjust the deposit rates with changes in monetary rates. Due to these changes, investors seeking high returns may soon consider booking long -term FDs or optional fixed income means.
