By Admin 
The Reserve Bank of India (RBI) has cut the repo rate twice in February and April this year, this deduction is a shortage of 50 basis points in total. The effect of this was that almost all banks, especially public sector banks, have reduced interest rates on their fixed deposits (FD). In the coming June also, RBI can make another cut, because inflation has seen some softening.
FD now invests beneficial?
If you are planning an investment in FD, then it can be beneficial for you to do it before June. Experts believe that as soon as interest rates fall further, the return on FD will also be reduced. The good thing is that once you get FD done, the interest rate is locked. That is, if you have invested at 7 per cent interest rate today, then despite the decrease in the rates in the market, you will get the fixed interest, whether it is one year or five years.
PSU banks current FD interest rates (May 2025)
Between the falling rates in the market, some government banks are still giving good interest rates. Below is the interest rates of top PSU banks for normal customers-
| bank th> 1 to 2 years duration thu> thead> | Bank of Maharashtra | 7.25 percent | Bank of Baroda | 7.3 percent | Canara Bank | 7.25 % | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Central Bank of India | Bank | 7.3 percent | Indian Overseas Bank | 7.3 % | State Bank of India (Sbi) | 7.05 % | UCO Bank 7.3 percent | Union Bank | 7.15 % |
| Bank thin> interest rate thu> thead> thead> thead> | |||||
|---|---|---|---|---|---|
| Bank of Maharashtra | 7.75 % | Punjab & Sindh Bank | 7.75 percent | UCO Bank | 7.55 % |
| Bank of India | 7.55 % | 7.4 percent | Indian Overseas Bank | 7.4 % |