RBI Policy Repo Rate: Will FD Interest Rates Rise Or Fall? SBI vs HDFC Bank Vs ICICI Bank, Check Best FD Rates

The Reserve Bank of India (RBI) will declare second bi-monthly monetary policy outcomes for FY27, on June 5, 2026. The decision on the repo rate will be pivotal for fixed deposit interest rates, as they are directly linked. Any change in the repo rate, either hike or cut or pause, causes banks to revise their FD rates accordingly.

Rate Cut, Or Rate Hike Or Rate Pause?

As per Saurabh Jain, Co-founder & CEO, Stable Money, RBI MPC is expected to keep the repo rate unchanged as it balances moderating inflation with emerging global uncertainties. While domestic macroeconomic indicators remain supportive, factors such as volatile crude oil prices, geopolitical developments, and currency movements are likely to warrant a measured approach from the central bank.

Currently, RBI's policy repo rate is at 5.25%, while the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) stood at 5% and 5.50%. Further, bank rate stood at 5.50%.

Will FD Rates Rise After RBI Policy On June 5, 2026?

In the expert's view, a pause would be positive for fixed-income investors. Government bond yields are likely to remain largely stable, while high-quality corporate bonds should continue to offer attractive risk-adjusted returns. For investors looking to build predictable income, the current environment remains favourable across both term deposits and bonds.

For FD investors, he added, "current rates remain attractive."

According to the expert, rather than trying to time the next policy move, investors with medium- to long-term goals can consider locking in a portion of their savings at today's rates while maintaining adequate liquidity. In uncertain rate environments, focusing on certainty of returns and disciplined asset allocation tends to be more rewarding than waiting for the perfect entry point."

How RBI Policy Will Impact FD Rates?

SBI FD Rates:

At SBI, general category investors get FD rates ranging from 3.05% to 6.40%. The highest rate is offered on 2 years to less than 3 years tenure. Meanwhile, senior citizens get interest rates on FDs below Rs 3 crore in the range of 3.55% to 7.05%.

The elderly earn the highest rate of 7.05% on tenure, 5 years and up to 10 years.

HDFC Bank FD Rates:

For deposits less than Rs 3 crore, HDFC Bank is offering 2.75% to 6.50% rates to general category. The highest rate of 6.50% is given on 3 Years 1 day to

To senior citizens, the private bank offers 3.25% to 7% rate. The elders earn 7% on 3 Years 1 day to

Axis Bank FD Rates:

Axis Bank offers 3% to 6.45% interest rates on less than Rs 3 crore FDs to general category. While senior citizens here get 3.50% to 7.20%.

ICICI Bank FD Rates:

The highest FD rate that ICICI Bank offers is of 6.50% to general category for tenures from 3 years 1 day to 10 years. The 6.50% rate is also given 5-Year (Tax Saver FD). The lowest rate is of 2.75% offered on 7 to 45 Days tenure.

Furthermore, senior citizens here get 3.25% to 7.1% rates. The highest 7.1% is given on 3 Years 1 Day to 5 Years and 5-Year (Tax Saver FD) tenures. While 7% is offered between 5 Years 1 Day to 10 Years tenure.

Kotak Bank FD Rates:

The regular customers earn between 2.75% to 6.80% interest rates on FDs below Rs 3 crore at Kotak Bank. But, senior citizens get 2.75% to 6.80% rates on tenures ranging from 7 days to 10 years.