The Reserve Bank of India (RBI) has reduced its repo rate to 6.25%, prompting a few banks to follow suit. As a result, some banks have lowered their interest rates on term deposits, though only slightly. This makes it the right time for depositors to lock in their savings in fixed deposits to maximize their earnings. The depositors who wish to invest in fixed deposits should consider doing so now in order to secure higher returns, as there is a tendency for the interest rates to drop further. DCB Bank and IndusInd Bank has lowered FD interest rates in February.
These two banks have cut their interest rates on fixed deposits(FD) in February.
DCB Bank
According to a Mint report, DCB Bank now offers an interest rate of 7.1% on a 1-year fixed deposit for general citizens and 7.6% for senior citizens.
For a 2-year fixed deposit, the bank provides 7.5% interest to general citizens and 8% to senior citizens. Similarly, for a 3-year fixed deposit, the interest rate remains 7.5% for general citizens and 8% for senior citizens.
IndusInd Bank
Apart from DCB, IndusInd bank has become another latest bank to cut the fixed deposit interest rate for general and senior citizens. With effect from 2025, the highest rate offered by IndusInd Bank is 7.75% for general citizens and 8.25% for senior citizens on deposits of different tenors.
Earlier, IndusInd Bank offered up to 7.99% interest to general citizens and up to 8.49% to senior citizens on different tenures. As per the IndusInd bank’s website, senior citizens can earn 8.25% interest on various deposits of 1 year to two years while general citizens can earn 7.75% interest on deposits of similar tenures.
IndusInd Bank compounds its fixed deposit interest quarterly, helping depositors earn more over time. For deposits with a tenure of up to 180 days, the bank pays simple interest upon maturity.
