A cut in the Reserve Bank of India's (RBI) monetary policy rate will not only reduce your EMI burden, it will also lower the interest one can earn on fixed deposits. Some private and public banks have revised their FD interest rates around the monetary policy meet.
On 7 August, RBI for the fourth consecutive time lowered its repo rate. However, this time around the central bank made a larger than previous cut of 35 basis points lowering repo rate to 5.40 percent. Subsequently, you will soon see FD and loan interest rates falling.
Here are the most recent interest cuts on fixed deposits:
The largest private bank in the country lowered its interest rates on term deposits with effect from 2 August. It had also lowered its lending rates with effect from 7 August.
While it offers term deposits for periods ranging from 7 days to 10 years here are the highest fetching HDFC Bank interest rates on FDs lower than Rs 2 crore:
|Period||General interest rates||Senior citizen interest rates|
|9 mnths 1 day < 1 Year||6.75%||7.25%|
|1 year 1 day - 1 year 3 days||7.00%||7.50%|
|1 year 4 days||7.00%||7.50%|
|1 year 5 days - 1 Year 16 Days||7.00%||7.50%|
|1 year 17 days - 2 Years||7.10%||7.60%|
|2 years 1 days - 3 Years||7.30%||7.80%|
|3 years 1day - 5 years||7.25%||7.75%|
State Bank of India
SBI made a sharp cut of 20 to 75 basis points in its FD interest rates recently. The new rates will be effective on term deposits below Rs 2 crore made 1 August onwards.
Further, SBI also lowered its MCLR within 2 hours of the monetary policy review. Retail loans from the banks are cheaper with its fourth consecutive MCLR cut in the financial year 2019-20.
If you hold a savings account with the bank, you should know that starting May 2019, the lender switched to a new interest regime wherein all savings accounts holding over Rs 1 lakh would be linked to RBI's repo rate. Since the repo rate was lowered on Wednesday, the rate cut will also reflect in your bank account.
|Period||General interest rates (%)||Senior citizen interest rates (%)|
|7 days to 45 days||5.00||5.50|
|46 days to 179 days||5.75||6.25|
|180 days to 210 days||6.25||6.75|
|211 days to less than 1 year||6.25||6.75|
|1 year to less than 2 year||6.80||7.30|
|2 years to less than 3 years||6.70||7.20|
|3 years to less than 5 years||6.60||7.10|
|5 years and up to 10 years||6.50||7.00|
Bank of India
Bank of India revised its term deposit interest rates recently with effect from 1 August. FD with this bank requires a minimum deposit of Rs 1 lakh and can be placed for acperiod between 7 days and 10 years.
Here are its revised interest rates on deposits less than Rs 2 crore.
|Period||General interest rates (%)|
|180 days to 269 days||6.00|
|270 days to less than 1 year||6.00|
|1 Year & above but less than 2 Yrs||6.50|
|2 years & above to less than 3 years||6.50|
|3 years & above to less than 5 years||6.50|
|5 years & above to less than 8 years||6.50|
The Kochi-headquartered private bank revised its FD rates a day before the monetary policy. Federal Bank offers term deposits ranging from a period of 7 days to 20 months. It offers an additional 0.50 percent to senior citizens on FD.
Here are the interest rates with effect from 6 August on deposits smaller than Rs 2 crore.
|Federal Bank||General interest rates|
|7 days to 14 days||3.50%|
|15 days to 29 days||4.50%|
|30 days to 60 days||5.00%|
|61 days to 90 days||5.70%|
|91 days to 180 days||6.00%|
|181 days to 270 days||6.25%|
|271 days to less than 1 year||6.50%|
|1 year to less than 20 months||7.00%|
|Above 20 months||7.00%|