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Lending and deposit rates are affected by repo rate drop as it reduces the cost of funding of banks. Low fixed deposit (FD) interest rates will result in low repo rate, and vice versa.
DCB Bank Slasshes FD Rate Post RBI Repo Rate.
A private sector bank, DCB Bank, has cut its interest rates up to 65 bps on a fixed deposit below Rs 3 crore for some tenure. According to the bank’s website, the revised rates have become effective from February 14, 2025.
FD rates amended after the RBI’s decision to cut RBI’s repo rate in 25 basis points, the MPC meeting of February came after a reduction of 6.50 percent to 6.25 percent in 2025. The benchmark borrowing rate cut was the first time in five years.
Lending and deposit rates are affected by repo rate drop as it reduces the cost of funding of banks. Low fixed deposit (FD) interest rates will result in low repo rate, and vice versa.
New interest rates
After the change, DCB Bank currently provides interest rates ranging from 3.75% to 8.05% for regular citizens with FD balance less than Rs 3 crore for terms from 7 days to 10 years. For FD with a period of 19 to 20 months, the highest interest rate of 8.05% is available.
For the balance of less than Rs 3 crore, the bank provides the interest rates of senior citizens from 4.25% to 8.55%; The highest FD interest rate of 8.55% is available for them for a period of 19 to 20 months.
In which FD tenure has the interest rate decreased?
The FD interest rate for ordinary citizens has been reduced by 55 basis points, from 8.05% to 7.50%, more than 26 months, but less than 37 months. From 8.05% to 7.85%, the bank has reduced the FD interest rate for tenure between 37 and 38 months by 20 basis points.
Additionally, DCB Bank reduced the FD interest rate for more than 38 months, but less than 61 months less than 65 basis points, from 8.05% to 7.40%.
