Following the RBI’s rate cut, this bank has reduced its fixed deposit interest rates by as much as 65 basis points
Following the RBI's rate cut, this bank has reduced its fixed deposit interest rates by as much as 65 basis points
The recent revision comes in the wake of the Reserve Bank of India (RBI) reducing the repo rate from 6.50% to 6.25% last week, marking the first decrease since 2020.
DCB Bank, a private sector lender, has lowered interest rates on fixed deposits (FD) under Rs 3 crore for certain tenures. As stated on the bank’s website, the interest rates have been cut by as much as 65 basis points (bps). These updated rates will be implemented starting February 14, 2025.
The recent revision comes in the wake of the Reserve Bank of India (RBI) reducing the repo rate from 6.50% to 6.25% last week, marking the first decrease since 2020. This cut in the repo rate decreases the cost of funds for banks, which in turn influences both lending and deposit rates. As a result, a lower repo rate will result in diminished interest rates for fixed deposits (FDs), and the opposite holds true as well.
DCB Bank has recently revised its interest rates, now offering rates ranging from 3.75% to 8.05% on fixed deposits (FDs) for general citizens with amounts under Rs 3 crore. These rates apply to tenures spanning from 7 days to 10 years, with the peak interest rate of 8.05% available for a tenure of 19 to 20 months.
For senior citizens, the bank offers interest rates between 4.25% and 8.55% for fixed deposit amounts below Rs 3 crore. The highest interest rate of 8.55% is also applicable for a tenure of 19 to 20 months for this demographic.
Which fixed deposit tenures have experienced reductions in interest rates?
For the general public, the interest rate on fixed deposits has been decreased by 55 basis points, from 8.05% to 7.50%, for tenures that are longer than 26 months but shorter than 37 months. Additionally, for tenures between 37 and 38 months, the bank has lowered the interest rate by 20 basis points, bringing it down from 8.05% to 7.85%.
For senior citizens, the fixed deposit interest rate has been decreased by 55 basis points, lowering it from 8.55% to 8% for terms longer than 26 months but shorter than 37 months.
Additionally, the bank has lowered the fixed deposit interest rate by 20 basis points, bringing it down from 8.55% to 8.35% for terms between 37 and 38 months.
DCB Bank has also made a significant reduction in the fixed deposit interest rate by 65 basis points, decreasing it from 8.55% to 7.90% for terms that exceed 38 months but are less than 61 months.
