RBI MPC Meeting 2025: Major Banks Revise FD Interest Rates Ahead of Key Decision-Full List Inside

The Reserve Bank of India's Monetary Policy Committee (MPC) meeting is set to begin today, with market participants eagerly looking forward to the outcome. The big question is whether the RBI will decide to reduce the repo rate this time. Previously, the central bank had kept the repo rate unchanged at 6.50%. However, market expectations are leaning towards a 25 bps reduction. Ahead of the RBI MPC meeting outcome announcement, which is scheduled for February 7th, major banks across India have already made adjustments to their fixed deposit rates earlier this year.

In January 2025, major banks in India revised their interest rates on the FD. However, it is expected that the RBI MPC rate decision could trigger further changes in deposit and lending rates. Below are the major Indian banks that have recently revised their fixed deposit rates for general citizens:

• Axis Bank

Axis Bank offers fixed deposit (FD) interest rates ranging from 3.00% to 7.00% for deposits under ₹5 crore. These rates are applicable for a wide range of investment tenures, from a short-term 7 days to a long-term 10 years. These revised FD rates came into effect on January 31st.

• Punjab National Bank (PNB)

Punjab National Bank (PNB) offers fixed deposit (FD) interest rates ranging from 3.50% to 7.25% for deposits below ₹3 crore. These rates are applicable for a wide range of investment tenures, from a short-term 7 days to a long-term 10 years. Notably, the highest interest rate of 7.25% is offered for FDs maturing in 400 days. These new rates took effect on January 1st.

• Karnataka Bank

Karnataka Bank has revised its fixed deposit (FD) interest rates, now offering returns between 3.50% and 7.50% for the general public. These rates apply to deposit tenures ranging from 7 days to 10 years. The highest interest rate of 7.50% is available for deposits maturing in 375 days. For senior citizens, the bank offers FD interest rates between 6.30% and 8.00% for tenures from 1 year to 10 years. These revised rates took effect in January.

• Union Bank

Union Bank of India offers fixed deposit (FD) interest rates ranging from 3% to 7.40%, depending on the chosen tenure, which can vary from 7 days to 10 years. The highest interest rate of 7.40% is offered for deposits maturing after 333 days. Senior citizens can earn 7.90% on FDs with the same 333-day tenure. These revised rates took effect on January 1, 2025.

• Shivalik Small Finance Bank

Shivalik Small Finance Bank (SFB) provides fixed deposit (FD) interest rates ranging from 3.50% to 8.80% for general citizens and 4.00% to 9.30% for senior citizens on deposits below ₹5 crore. The highest interest rate of 8.80% for general citizens is offered on deposits with tenures between 12 months and 1 day and less than 18 months. These revised rates were implemented in January.

• Federal Bank

Federal Bank offers fixed deposit (FD) interest rates ranging from 3% to 7.50% for deposits under ₹3 crore. These rates are applicable for various tenures, from 7 days to 10 years. The highest interest rate of 7.40% is offered for deposits maturing in 50 months. These updated rates took effect in January.