Archive · 27 Jun 2025
FD Interest Rates Revised by Banks in Response to Repo Rate Cuts
Banks in India are changing how much interest they pay on Fixed Deposits (FDs) because the Reserve Bank of India (RBI) lowered a key interest rate.
This affects how much money people earn on their savings.
Senior citizens usually get better interest rates than others.
PNB offers the best rates among major banks for senior citizens.
Also, Sundaram Finance is increasing rates for FDs.
Financial experts advise senior citizens to choose longer-term FDs to get stable returns, and also to compare rates across different banks.
Several Indian banks have adjusted Fixed Deposit (FD) interest rates in June 2025, influenced by RBI's repo rate cuts.
Senior citizens typically receive 0.25% to 0.75% more interest on FDs compared to general customers.
Punjab National Bank (PNB) offers the highest interest rate among major banks for senior citizens at 7.20% for a 1-year 25-day term.
Sundaram Finance Ltd. revised deposit interest rates effective July 1, 2025, with rates for senior citizens at 7.2% for 12 months and 7.5% for 24 and 36 months.
Experts suggest senior citizens consider longer-term FDs (2-3 years) to lock in current rates.
- Who
- Banks like SBI, HDFC, ICICI, PNB, and Bank of Baroda, along with Sundaram Finance, and senior citizens.
- What
- Banks are revising Fixed Deposit (FD) interest rates.
- When
- The rate changes were announced in June and are effective from July 1, 2025.
- Where
- In India.
- Why
- Due to the RBI lowering repo rates, and to attract customers.
Senior Citizen Investing
General Customer Investing
Investment Strategies
Senior Citizen Investing
Seeking Safety in FDs with guaranteed returns and capital protection.
General Customer Investing
Choosing FDs with longer terms to lock in current rates.
- RBI Repo Rate Change
- Cut by 100 bps in the last 5 months
- PNB Senior Citizen FD Rate
- 7.20% (1 year 25 days)
- Sundaram Finance Senior Citizen Rates
- 7.2% (12 months), 7.5% (24 and 36 months)
- Effective Date
- July 1, 2025 (Sundaram Finance)
