Repo Rate Cut 2025: These Banks Still Offer Over 7% FD Interest Despite RBI’s Move

Repo Rate
New Delhi:
In a significant monetary move, the Reserve Bank of India (RBI) has reduced the repo rate by 50 basis points, bringing it down to 5.50% in the latest Monetary Policy Committee (MPC) meeting held on June 6, 2025. This marks the third consecutive rate cut by the central bank this year, aimed at stimulating growth amid evolving macroeconomic conditions.

As expected, many banks have either already started reducing their Fixed Deposit (FD) interest rates or are preparing to do so. However, all is not lost for conservative investors. Several leading banks continue to offer over 7% interest on FDs, particularly for senior and super senior citizens, making FDs a safe and still-rewarding investment option.

Why FDs Remain a Safe Bet Even After the Rate Cut

Despite the downward trend in interest rates, Fixed Deposits remain a preferred investment choice for risk-averse individuals, especially retirees and senior citizens. FDs provide capital protection, assured returns, and are backed by the banking system’s security, making them suitable for those seeking stable income over the short to medium term.

With careful planning and tenure selection, investors can still lock in competitive interest rates, even as the repo rate softens.

Leading Banks Offering Over 7% Interest on FDs

Here’s a detailed look at which banks are currently offering the best FD interest rates, both for general and senior citizens:

State Bank of India (SBI)

  • General Citizens (2–3 years): 6.70%

  • Senior Citizens: 7.20%
    SBI remains a trusted option for safe investments with consistent returns, especially over medium durations.

HDFC Bank

  • General Citizens (15–18 months): 6.85%

  • Senior Citizens: 7.35%
    This private sector giant is offering impressive rates for medium-term FDs, making it an attractive choice for those seeking liquidity and high returns.

ICICI Bank

  • General Citizens (18 months–2 years): 6.85%

  • Senior Citizens: 7.35%
    Another private banking leader, ICICI Bank is a solid choice for investors focused on near two-year durations.

Bank of Baroda

  • General Citizens (1 year): 6.70%

  • Senior Citizens: 7.20%

  • Super Senior Citizens (80+): 7.20%
    Ideal for short-term, low-risk investors, especially older individuals looking to maximize earnings on one-year deposits.

Punjab National Bank (PNB)

  • General Citizens (1 year): 6.70%

  • Senior Citizens: 7.20%

  • Super Senior Citizens: 7.50%
    PNB’s offering is among the highest for the 80+ age group, making it a top choice for short-term, high-yield savings.

Conclusion: Choose Tenure and Bank Wisely

While repo rate reductions typically lead to a general decline in deposit interest rates, timing your FD investment with the right tenure and bank can still yield solid returns. Senior citizens, in particular, can benefit from enhanced rates, with many institutions offering above 7%, even post-repo rate cut.

Investors are advised to act quickly to lock in the current rates before further cuts take effect and to compare FD schemes across banks to optimize their savings portfolio.

Author Profile

Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.