Fixed Deposit Rates in 2025: If you’re looking to invest your hard-earned money in a safe place and avoid risk, this information is for you. The Reserve Bank of India (RBI), the country’s largest banking institution, recently reduced the repo rate by 25 basis points during its Monetary Policy Committee (MPC) meeting.
This is the second consecutive time that the repo rate has been cut. Now the repo rate has come down to 6% per annum, due to which it is expected that banks may soon cut the interest rates on FD (Fixed Deposit). In such a situation, this can be a golden opportunity for investors to lock their money in FD for medium to long term.
Why is FD a reliable investment option
People often worry about where their money will be safe and where they also get fixed benefits. In such a situation, FD,i.e. fixed Deposit, can prove to be an excellent option. The special thing is that the returns are pre-determined and are not affected by market fluctuations.
- 3-year FD rates of top banks – which one to choose?
- If we talk about the top banks of the country at this time, many banks are giving good interest rates on 3-year FD.
- State Bank of India (SBI) is giving 6.75% interest to common citizens and 7.25% interest to senior citizens.
- Bank of Baroda (BOB) has started giving interest at the rate of 7.15% (common citizens) and 7.65% (senior citizens).
- IDFC Bank is giving attractive rates of 6.8% and 7.3%.
- HDFC Bank, ICICI Bank and Kotak Mahindra Bank – all three banks are giving 7% interest to common citizens and 7.5% interest to senior citizens.
- Union Bank of India is giving interest at the rate of 6.7% and 7.2%.
Decide soon, interest rates may be cut
After two consecutive repo rate cuts by RBI, there are indications that banks may reduce FD interest rates in the near future. In such a situation, if you are planning to invest in FD, then delaying may be harmful.
Understand tax and liquidity too
This time is great for those who want a stable and secure income source for their future. The biggest advantage of FD is that it not only keeps your money safe, but if needed, you can also break it before time, whereas this facility is not available in other investment options like PPF. However, keep in mind that tax has to be paid on the interest received on FD, and it is added according to your tax slab. Therefore, before investing in FD, definitely consult your financial advisor.
If you want a guaranteed return while staying away from risk, then this time is suitable for investing in FD. Interest rates may fall further in the coming times, so you should make an investment decision in advance.
Disclaimer: This article is written for general information purposes only. Before making any investment-related decisions, please seek expert advice. Interest rates may change from time to time, Please get the latest information from the official website or branch of the concerned bank before investing.
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