New Delhi: Following Reserve Bank of India’s announcement to cut repo rate by 25 basis points to 6 per cent, almost all the banks have reduced their interest rates on savings account deposits. After the conclusion of the Monetary Policy Committee (MPC) 54th meeting and the first of the financial year 2025–26, RBI Governor Sanjay Malhotra announced that the MPC members unanimously decided to reduce the policy repo rate by 25 basis points, bringing it down to 6 per cent with immediate effect.
The repo rate is the rate at which the RBI lends money to commercial banks. The reduction of repo rate is aimed at boosting lending and investment.
Following the RBI’s decision to lower the repo rate, several banks including HDFC Bank, ICICI Bank, Axis Bank, Federal Bank, YES Bank and others.
HDFC Bank
HDFC Bank reduced the interest rate on savings accounts by 0.25 percent. The country’s largest private sector lender will be providing 2.75 interest on savings accounts on deposits less than Rs 50 Lakh and 3.25 per cent on deposits above Rs 50 Lakh. The private sector lender also slashed its fixed deposit rates by 0.35% to 0.40% with effect from 1st April 2025.
ICICI Bank
ICICI Bank announced a cut in its savings account deposit interest rate by 0.25 per cent. The private lender said that its customers will be entitled to get a 2.75 per cent interest rate on their savings bank balances of up to Rs 50 lakh. The bank revised its rates with effect from April 16, 2025.
Axis Bank
Axis Bank has lowered its interest rates for savings accounts by 25 basis points. Customers with savings account balances below Rs 50 lakh will get 2.75 per cent interest rate, while individuals having balances ranging from Rs 50 lakh to below Rs 2,000 crore will earn 3.25 per cent per annum.
Federal Bank
Federal Bank has cut its savings by 25 basis points with effect from 17th April 2025. The savings account holders will now earn 2.75% on deposits up to Rs 50 lakh.
| Slab | End of the Day Balance | Rates of interest (p.a) |
| 1 | Upto and including Rs 1L | 2.75% – uniform rate |
| 2 | Above Rs 1L to less than Rs 50Cr | 2.75% for balance less than Rs 50L |
| 3.50% for balance of Rs 50L to less than Rs 5Cr | ||
| 5.25% for balance of Rs 5Cr to less than Rs 50Cr | ||
| 3 | Rs 50Cr to less than Rs 150Cr | 2.75% for balance upto Rs 1L |
| 6.90% for balance above Rs 1L to less than Rs 150Cr | ||
| 4 | Rs 150Cr and above | 2.75% for balance upto Rs 1L |
| 3.00% for balance above Rs 1L |
YES Bank
YES Bank has reduced interest rates on its savings accounts with effect from April 21, 2025. The bank customers having deposits up to Rs 10 lakh will now earn 3 per cent per annum, while the deposits between Rs 10 lakh and Rs 25 lakh will earn 3.5 per cent.
HDFC Bank, ICICI Bank, Axis Bank, Federal Bank, and YES Bank have slashed interest rates on savings account deposits after RBI announced repo rate cut in the first week of April 2025. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
