RBI May Reduce the Repo Rate This December, Impacting FD Rates - Secure Higher Returns by Investing Early

Bank FDs have always been the go-to choice for millions of Indians who prefer safety, guaranteed returns, and zero surprises. But if you're planning to invest, here's a key update: the RBI’s Monetary Policy Committee (MPC) meeting begins tomorrow, and a possible repo rate cut is on the cards.

Why does this matter?

Because when the RBI cuts its repo rate, banks usually slash their FD interest rates too. That means future FDs could earn you less. So if you want to lock in higher returns, now is the perfect time.

To help you grab the best deal, here’s a quick comparison of the latest FD rates across major banks:

SBI FD Interest Rates

• 1 year: 6.25%
• 2 years: 6.45%
• 3 years: 6.30%
• 4 years: 6.30%
• 5 years: 6.05%

HDFC Bank FD Interest Rates

• 1 year: 6.25%
• 2 years: 6.45%
• 3 years: 6.45%
• 4 years: 6.40%
• 5 years: 6.40%

Bank of Baroda FD Interest Rates

• 1 year: 6.25%
• 2 years: 6.50%
• 3 years: 6.50%
• 4 years: 6.40%
• 5 years: 6.40%

ICICI Bank FD Interest Rates

• 1 year: 6.25%
• 2 years: 6.40%
• 3 years: 6.60%
• 4 years: 6.60%
• 5 years: 6.60%

Canara Bank FD Interest Rates

• 1 year: 6.25%
• 2 years: 6.25%
• 3 years: 6.25%
• 4 years: 6.25%
• 5 years: 6.25%

Which Bank Offers the Best Returns?

If you’re aiming for the highest rates, ICICI Bank currently leads with up to 6.60% for tenures between 3-5 years. Bank of Baroda also offers competitive rates at 6.50% for 2-3 years.

With a potential rate cut looming, locking your money in an FD before the RBI announcement can help you secure higher returns. Compare your options, choose the best rate, and invest smartly, before the opportunity slips away.