By Admin 
Repo Rate Cut: The Reserve Bank of India (RBI) has now reduced the repo rate by 50 basis points to make it 5.50 percent. This year, RBI has reduced the rate rate for the third consecutive time. Due to low repo rate, those people who are already running in the bank or who are thinking about taking a new loan. This is because due to reduced repo rate, the loan becomes cheaper, banks reduce interest rates.
They will suffer loss due to reduced repo rate
However, this is bad news for those who have invested on a fixed deposit (FD) because there is scope to get less returns. Ever since the repo rate is being cut in 2025, the bank FD interest rate is being affected.
The RBI had cut the repo rate by 25 basis points in February and then April this year, after which banks also started reducing interest on FD. According to the report of SBI Research, since February 2025, the FD rates have decreased by 30-70 basis points. Along with low returns on fixed deposits, there has been a decrease in interest rate on savings bank accounts.
What can investors do now?
Interest rates are also expected to decrease on fixed deposits due to reduced repo rate. However, it may take several months now. Many banks are still offering good offers on FD. In such a situation, investors can invest on FD at higher interest rates without losing time. Many banks are still offering 8 percent or more interest on long -term fixed deposits.
Although now most of the small finance banks are offering more interest on FD, but since investing on FD in small financial banks is considered risky, before investing, keep in mind that it comes under the deposit insurance cover of Rs 5 lakh of deposit insurance corporation of India (DICGC).