FD Interest Rate: Following the reduction in the repo rate, there has been a notable variation in the interest rates for numerous fixed deposits (FD rates). Throughout March, several banks have lowered their FD interest rates, and these new rates are now in effect. This adjustment encompasses government, private, and microfinance institutions.
It is important to note that changes in repo rates directly influence both loans and fixed deposits. Consequently, banks adjust their interest rates accordingly. The Reserve Bank of India (RBI) has set the new rate at 6.25%. Between February and March, numerous banks have modified their fixed deposit interest rates. Notably, DCB Bank, Punjab National Bank (PNB), and AU Small Finance Bank have all revised their rates this month.
Punjab National Bank
The well-known public sector bank, PNB, has updated its FD interest rates ahead of Holi. The new rates apply to deposits of Rs 3 crore and above, offering interest rates between 5.25% and 7.25% for general customers on fixed deposits ranging from 7 days to 10 years. For deposits below Rs 3 crore, the bank provides interest rates from 3.25% to 7%. Additionally, senior citizens are entitled to an extra 0.50% interest.
AU Small Finance Bank
AU Small Finance Bank has also adjusted its FD interest rates, effective from March 10. The bank now offers interest rates between 3.75% and 8% for general customers on tenures from 7 days to 120 months, while senior citizens can receive interest rates ranging from 4.25% to 8.50%. The highest returns are available for an 18-month tenure.
DCB Bank
In the private sector, DCB Bank has reduced its FD interest rates by 20-25 basis points, with the new rates taking effect from March 5. The bank currently offers interest rates from 3.75% to 8% for general customers on fixed deposits ranging from 7 days to 120 months, while senior citizens receive returns between 4.25% and 8.50%.