It is the first rate cut during the second term of President Donald Trump, according to Money Control.
The majority of standard banks provide regular (non-senior) depositors with FD rates that range from 6.45% to 6.7% annually. Seniors usually receive an additional 50 basis points. Small finance banks continue to offer some of the highest rates, often reaching 8% or higher.
Current FD rates at Private sector banks:
Bandhan Bank: Highest: 7.20% (2 years to less than 3 years)
HDFC Bank: 6.6% for regular citizens and 7.10% for senior citizens (18-21 months)
Kotak Mahindra Bank: 6.6% for regular and 7.10% for senior citizens (391 days to 23 months)
ICICI Bank: 6.6% for regular citizens and 7.10% for senior citizens (2 years and above)
Federal Bank: 6.70% for regular depositors and 7.20% for senior citizens (999 days)
DCB Bank: Highest: 7.20% (27 months to
RBL Bank: Highest: 7.20% (2 years 1 day to 3 years)
Jammu and Kashmir Bank: Highest: 7.10% (888 days)
SBM Bank India: Highest: 7.50% (5 years)
FD rates at Public sector banks are:
State Bank of India (SBI): 6.45% for regular and 6.95% for senior citizens (2 to 3 years)
Punjab National Bank (PNB): 6.6% for regular and 7.10% for senior citizens (390 days).
Union Bank of India: 6.6% to regular and 7.10% to senior citizens (3 years).
Indian Overseas Bank: Highest: 6.70% (444 days)
Indian Bank: Highest: 6.70% (More than 5 years)
Central Bank of India: Highest: 6.75% (5 years and above up to 10 years)
FD rates at Small Finance Banks are:
ESAF Small Finance Bank: Highest 7.60% (444 days)
Slice Small Finance Bank: Highest: 7.75% (18 months 1 day to 18 months 2 days)
Jana Small Finance Bank: Highest: 8% (5 years)
Suryoday Small Finance Bank: Highest: 8.20% (5 years)
Utkarsh Small Finance Bank: Highest: 7.65% (2 years to 3 years)
The RBI maintained the repo rate at 5.5% at its most recent policy review on August 6. However, it has already reduced rates by 100 basis points in 2025, which led lenders to reduce the amount of deposits they provide. According to BankBazaar.com CEO Adhil Shetty, FDs may approach 6% if the US Fed eases further and the RBI reduces by an additional 50 basis points. Monthly cash flows can be significantly impacted by even a 0.5% decline, per Business Standard.
Even a 0.25–0.50% decline in the FD yield can have a substantial impact on savings income. It is now recommended that depositors putting off commitments lock in today’s rates before they fall even lower. To lessen the impact of declining rates, experts also advise scaling up FDs or distributing payments over several tenures.
