Kolkata: Did you know that SBI (State Bank of India) boasts of more than 50 crore customers — a number which is bigger than the combined total population of the US and Russia. And a significant number of them put their money in FD (fixed deposits). Therefore, you can easily understand how significant the interest rate on fixed deposit SBI pays is to a very large number of people. Not only SBI. The interest rates big banks such as HDFC Bank and ICICI Bank pay to its customers is of immense significance to crores of people. The reason — a number of people, especially those who are retirees and young people who are averse to taking risks — depend om the interest income from FDs both to run their families and for appreciation of capital.
However, interest rates in India have started firmly on the downward march. Reserve Bank of India (RBI) has already slashed the Repo rate twice in February and April and experts state that the rate cut will continue in the current financial year. The retail inflation rate is below the RBI’s target of 4% and if it remains in that zone, RBI will keep slashing rates in order to infuse growth in the economy for raising consumption and employment generation.
Interest rate on SBI FD
As RBI slashes key interest rates, all banks, including SBI, will cut deposit rates as well. So it is crucial that customers grab interest rates before they are further reduced. The interest rates that State Bank of India is offering to general customers from May 16, 2025 is 6.55% and 7.05% for senior citizens. SBI trimmed the rates from 6.75% and 7.25% for general customers and senior citizens respectively. The rate cut came following the RBI slashing Repo Rate in February and April by 25 basis points in each instance.
Interest rate on HDFC Bank FD, ICICI Bank FD
Now turn to HDFC Bank, the biggest private sector bank in the country. HDFC Bank is offering 6.65% interest on FD of three-year tenure to the general customers and 7.15% to senior citizen customers. ICICI Bank, the second biggest private sector bank in the country, is offering an interest rate which is higher than both SBI and HDFC Bank on the three-year fixed deposit. It is paying 6.75% to general customers and 7.25% to senior citizens for all FDs involving less than Rs 3 crore.
India is moving firmly on the interest rate downcycle and those who put their money in fixed deposits would like to do so before the interest rates are further slashed. The three-year FD is a popular tenure among customers. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
