Bank FD Rates: Special Deposit Schemes and Expected Rate Cuts
Why in the news
Special FD offers end on March 31, but banks may wait before cutting, or extend them at lower rates.
Key facts
| Scheme | Rate | Senior citizens |
|---|---|---|
| SBI Amrit Vrishti (444 days) | 7.25% | 7.75% |
| SBI 400-day FD | 7.10% | – |
| HDFC Bank (35 months) | 7.35% | 7.85% |
Why rates may stay for now
- Banks are watching liquidity and RBI policy.
- Retail rates hold on year-end demand despite softer wholesale rates.
What comes next
- Deposit rates likely to fall in April-June 2025.
- The RBI dividend in May may speed up cuts.
- Lending rates may drop first, forcing deposit rate cuts to protect margins.
Deposit vs credit growth
- Deposits grew 10.2% year on year to ₹225.1 lakh crore; credit grew 11.1%.
- High credit-to-deposit ratios may make banks curb lending growth.
Exam angle
- Deposit base: ₹225.1 lakh crore.