New Delhi: Induslnd bank announced on Thursday to decrease the interest rates on fixed deposits (FDs) by 0.25%. The step is considered to impact the depositors directly as they will receive less interest on their deposits. The bank’s announcement came at the same time when RBI kept the repo rate unchanged for the third time consecutively due to decreasing inflation.
RBI had increased the repo rate to 6.5% last year in order to rein the running inflation and spiking prices of general items. Banks followed RBI and increased the interest rates on FDs.
Now as the inflation has come down around the manageable level and RBI has in no mood to spike the repo rate further, the banks have started reducing the interest rate on FDs.
The Induslnd bank is now offering an interest between 3.5% to 7.50% on FDs depending on maturities of 7 days to 10 years. The new rates are implemented from August 05, 2023.