This is a shift from the last MPC in December 2025 when the RBI lowered the repo rate by 25 bps, bringing the total cuts for the year to 125 bps. With no cut in the repo rate this time, it is highly unlikely that banks and small finance banks (SFBs) will significantly lower their FD interest rates. That said, the transmission of the previous repo rate cut is not yet complete and some banks and SFBs may still cut FD rates.Repo rate: A brief history Date Rate (%) Change (%) 07-Feb-25 6.25% -0. ...

Fixed deposits (FDs) are an important financial instrument used for saving and steady income. They are considered a safe option as they come with guaranteed returns and low risk. This makes them ideal for short-term investments and for investors who prefer certainty over high returns. Their simple structure and fixed tenure make them suitable for people with limited time to track markets. This means that certain groups such as elderly investors can choose FDs for regular interest income and capital safety.  ...

Core Viewpoint - The fixed deposit (FD) rates have been reduced significantly due to the Reserve Bank of India's (RBI) repo rate cuts, and the outlook for 2026 suggests that rates may remain stable or trend slightly lower rather than increase sharply [1][5][10] Group 1: FD Rate Changes and Influences - In 2025, banks and small finance banks (SFBs) cut FD interest rates multiple times following a total repo rate cut of 125 basis points by the RBI [9][10] - The last repo rate cut occurred in December 2025, when the RBI reduced the rate by 25 basis points [1][10] - The transmission of these rate cuts into FD rates takes time, and the full impact of previous cuts is still unfolding, which may take months to years [2][10] Group 2: Future Expectations for FD Rates - Swapnil Aggarwal, Director at VSRK Capital, anticipates that FD rates in 2026 are more likely to remain stable or trend slightly lower, contingent on controlled inflation and a more accommodative monetary policy [5][6] - A significant resurgence in inflation or unexpected economic stress is deemed unlikely to lead to a sharp increase in FD rates, suggesting a stable-to-soft outlook for deposit rates [6][10] Group 3: Investment Strategies Amidst Rate Changes - Investors may consider reallocating a portion of their savings to high-quality debt funds if FD rates decline, as these funds can benefit from falling yields [7][8] - Conversely, during rising rate periods, it is advisable to maintain short-term FDs to allow gradual reinvestment at higher rates as they become available [8][9] - Diversification across FDs, debt funds, and hybrid funds is recommended to manage risk while optimizing returns [9][10] Group 4: Current FD Rates at Major Banks - The highest FD rates at major banks include Bandhan Bank at 7.2%, RBL Bank at 7.2%, and IDFC FIRST Bank at 7% for specific tenures [3][4]

HDFC Bank FD rates: India's largest private sector institutional lender, HDFC Bank, has decided to revise its fixed deposit interest rates, effective from 17 December 2025, after the Reserve Bank of India (RBI) cut its benchmark interest rate for the Indian economy to 5.25%, compared to its earlier 5.50% levels earlier this month.Mint reported earlier that the RBI announced a 25-basis-point rate cut to 5.25% citing that India is in a “rare goldilocks period” where the growth of the nation remains strong, an ...

SynopsisFD interest rate in December: State Bank of India has revised its fixed deposit interest rates, reducing them by 5 basis points for tenures between 2 to less than 3 years. General citizens will now earn 6.40%, while senior citizens will receive 6.90%. These changes place SBI's FD rates in comparison with those offered by HDFC Bank, ICICI Bank, and Canara Bank. ...

SynopsisState Bank of India has revised its fixed deposit and lending rates, effective December 15, 2025. The bank has reduced interest rates on several FD tenures, including a 5 basis point cut for the 2-year to less than 3-year bracket. The "Amrit Vrishti" scheme also sees a rate reduction for all citizen categories. ...

Core Viewpoint - The State Bank of India (SBI) has reduced its lending rates by 25 basis points in response to the Reserve Bank of India's (RBI) policy rate cut, making loans cheaper for borrowers [1][2]. Group 1: Lending Rate Reductions - SBI's External Benchmark Linked Rate (EBLR) will decrease to 7.90% effective December 15, 2025 [1]. - The Marginal Cost of Funds-Based Lending Rate (MCLR) has been reduced by 5 basis points across all tenures, with the one-year maturity MCLR falling to 8.70% from 8.75% [2]. - The Base Rate/BPLR has been lowered to 9.90% from 10%, effective December 15 [3]. Group 2: Fixed Deposit and Specific Scheme Rates - The fixed deposit rate for maturities between two to three years has been cut by 5 basis points to 6.40%, effective December 15 [3]. - The interest rate for the '444 days' Amrit Vrishti scheme has been revised from 6.60% to 6.45%, effective December 15 [4]. Group 3: Impact on Borrowers - The rate reductions will lower Equated Monthly Instalments (EMIs) for both existing and new borrowers linked to these benchmarks [6]. - Retail customers seeking home, vehicle, and personal loans will benefit from enhanced affordability, while MSMEs and corporate borrowers will experience reduced costs of funds, supporting business growth [6]. Group 4: Other Lenders - Indian Overseas Bank (IOB) has also announced a reduction in its lending rates, effective December 15, 2025 [4][5]. - IOB's EBLR has been reduced by 25 basis points from 8.35% to 8.10%, fully passing the policy rate cut to customers [5].

Core Insights - The article emphasizes the importance of comparing fixed deposit (FD) interest rates across different banks, particularly for senior citizens who receive an additional 50 basis points on their deposits [1] Bank Interest Rates Summary - **HDFC Bank**: Offers the highest interest rate of 7.1% for senior citizens on a tenor of 18-21 months, with rates ranging from 6.75% to 6.9% for tenors between 1-5 years [2] - **ICICI Bank**: Provides an interest rate of 7.2% for tenors of 2 to 5 years, starting from 6.75% for a 1-year tenor for senior citizens [2] - **Kotak Mahindra Bank**: Offers 7.2% interest on FDs with tenors between 391 days to less than 2 years, and 6.75% for a 1-year deposit [3] - **Federal Bank**: Provides a competitive interest rate of 7.2% on a 36-month FD for senior citizens, with a 1-year tenor offering 6.75% [4] - **State Bank of India (SBI)**: The largest bank in India offers 7.05% interest for tenors between 5 to 10 years, including a 50 basis points premium under the SBI We Care program [5] - **Canara Bank**: Offers 7% interest on a 444-day FD for senior citizens, with a 1-year tenor also providing 6.75% [5] - **Union Bank of India**: Provides 7.1% interest on a 3-year FD for senior citizens, with a 1-year tenor offering 6.9% [6]

SBI to discontinue mCASH service after November 30, 2025: Here’s how customers can send money to third-party beneficiaries after thatWhich Post Office small savings schemes offer higher interest rates than FDs of many leading banks?Post Office small savings schemes are offering better returns than many leading banks’ fixed deposit schemes. Post office scheme interest rates are revised every quarter by the government. At present, below-mentioned post office schemes are offering 7% and above interest rates.In ...

Core Insights - The article emphasizes the importance of comparing interest rates from different banks before opening a fixed deposit (FD) account to maximize returns [1] - It highlights that the highest interest rates are not always associated with the longest tenors, indicating variability in returns based on specific deposit durations [2] Summary of Interest Rates by Banks - **HDFC Bank**: Offers 6.6% for regular citizens and 7.1% for senior citizens on deposits with a tenor of 18 to 21 months, effective from June 25, 2025 [3] - **ICICI Bank**: Provides 6.6% interest for regular citizens on 2-year deposits and 7.1% for senior citizens [3] - **Kotak Mahindra Bank**: Offers 6.6% for regular citizens on deposits between 390 days and 23 months, and 7.1% for senior citizens, effective from August 20 [4] - **Federal Bank**: Provides 6.7% interest for regular citizens on 999-day FDs and 7.2% for senior citizens, effective from August 18 [4] - **State Bank of India (SBI)**: Offers 6.45% for regular citizens on 2-3 year FDs and 6.95% for senior citizens [5] - **Punjab National Bank (PNB)**: Provides 6.6% interest on 390-day FDs for regular citizens and 7.1% for senior citizens, effective from September 1 [6] - **Union Bank of India**: Offers 6.6% for regular citizens and 7.1% for senior citizens on 3-year deposits, effective from August 20, 2025 [6] - **Canara Bank**: Provides 6.5% for regular citizens and 7% for senior citizens on 444-day term deposits, effective from August 7 [7]