Following the Reserve Bank of India's (RBI) recent move to cut the repo rate by 25 basis points, several leading banks, including Kotak Mahindra Bank, Axis Bank, Union Bank of India, and RBL Bank, have revised their Fixed Deposit (FD) interest rates. If you're looking to maximize your returns on FDs, knowing where the highest rates are currently offered is crucial. Let’s dive into the latest updates and see where your money can earn the most.
Starting from April 23, Kotak Mahindra Bank has adjusted its FD rates for deposits under ₹3 crore. Now, regular customers can earn between 2.75% and 7.15%, while senior citizens enjoy a slightly higher range of 3.25% to 7.65%.
Axis Bank has also made similar changes effective from April 23. Regular depositors can now earn between 3% and 7.05%, and senior citizens between 3.5% and 7.65%. These updates align with the broader trend of banks revising their offerings post the RBI’s monetary policy shift.
Union Bank of India has updated its FD rates effective April 25 for deposits below ₹3 crore, spanning tenures from 7 days to 10 years. Regular customers will earn between 3% and 7.15%, senior citizens between 3.5% and 7.55%, and super senior citizens (typically those aged 80 and above) between 3.75% and 7.85%.
RBL Bank is offering some of the most competitive rates currently. For deposits under ₹3 crore, interest rates vary from 3.5% to 7.75% for regular customers. Senior citizens can earn between 4% and 8.25%, while super senior citizens are eligible for even higher rates ranging from 4.25% to 8.50%. Notably, RBL offers an attractive 8.5% interest for super senior citizens opting for a 500-day FD.
If you are considering locking in your funds, here's a quick comparison of where you can get the highest returns:
Kotak Mahindra Bank: 390-day FDs offer 7% for regular customers and 7.5% for senior citizens.
Axis Bank: 15 to 18-month FDs provide 7.05% for regular customers and 7.55% for senior citizens.
Union Bank of India: For a short 45-day FD, super senior citizens can earn up to 7.85%.
RBL Bank: 500-day FDs yield the highest return, offering 8.5% to super senior citizens.
Clearly, RBL Bank stands out if you are seeking the best FD rates, especially for senior and super senior citizens.
The RBI’s decision to cut the repo rate was aimed at stimulating economic activity by making borrowing cheaper. However, it also impacts deposit rates across the banking sector. Banks tend to lower FD rates when borrowing becomes cheaper, to manage their cost of funds effectively.
This move by banks to adjust FD rates indicates a shifting interest rate environment, where savers may need to be more strategic about where and how they invest their money.
With interest rates on FDs seeing downward revisions, it's essential to shop around before investing. Senior and super senior citizens, in particular, still have lucrative opportunities to earn higher returns if they choose the right tenure and bank.
As banks continue to adjust to the evolving economic scenario, staying informed can help you maximize your earnings on fixed deposits. If you’re planning to invest in an FD soon, carefully compare offers, tenure benefits, and additional perks offered to senior citizens before making a decision.
Stay tuned for more updates as the financial landscape continues to evolve!
