DCB Bank, a private sector lender, has reduced its interest rates on fixed deposits (FDs) below Rs 3 crore for select tenures. The revised rates will come into effect on February 14, 2025. This move follows the Reserve Bank of India’s (RBI) recent reduction of the repo rate from 6.50% to 6.25%, the first such reduction since 2020. The decreased repo rate will lead to lower FD interest rates, and vice versa.
The revised FD interest rates range between 3.75% and 8.05% for general citizens and 4.25% and 8.55% for senior citizens, depending on the tenure. The highest interest rate, 8.05%, is offered for a tenure of 19 months to 20 months for both general citizens and senior citizens.
DCB Bank has reduced its FD interest rates by up to 65 basis points (bps) for select tenures. For general citizens, the bank has reduced the FD interest rate by 55 bps for tenures above 26 months but less than 37 months, and by 65 bps for tenures exceeding 38 months but less than 61 months. For senior citizens, the bank has cut the FD interest rate by 55 bps for tenures above 26 months but less than 37 months, and by 65 bps for tenures exceeding 38 months but less than 61 months.
The revised FD interest rates are as follows:
* For general citizens: 3.75% to 8.05% for tenures ranging from 7 days to 10 years.
* For senior citizens: 4.25% to 8.55% for tenures ranging from 7 days to 10 years.
Overall, the revised FD interest rates will affect individuals who are planning to invest in FDs below Rs 3 crore with DCB Bank. The reduced interest rates may lead to a decrease in the returns on investment, but they may also be more attractive to investors who are looking for a low-risk investment option with a fixed return.