DCB Bank, a private sector bank, has reduced interest rates on fixed deposits (FDs) by 0.65% for select tenures on deposits below Rs 3 crore.
These new rates are effective from February 14, 2025, as per the bank’s website.
The reduction follows the Reserve Bank of India (RBI) cutting the repo rate by 0.25%, leading to concerns that commercial banks would lower FD rates.
The repo rate is the rate at which banks borrow from the RBI. When it is reduced, loans become cheaper for banks, giving them enough liquidity.
As a result, they may not need to offer higher interest on deposits, which could lead to a decrease in FD interest rates.
On which FDs interest has decreased in DCB Bank
DCB Bank has reduced the interest rate on FDs for specific tenures. For FDs with a tenure between 26 to 37 months, the interest rate has dropped by 0.55%, from 8.05% to 7.50% per annum for general citizens, and from 8.55% to 8% per annum for senior citizens.
For FDs with a tenure between 37 to 38 months, the rate has decreased by 0.20%, from 8.05% to 7.85% per annum for general citizens, and from 8.55% to 8.35% per annum for senior citizens.
The interest rate on FDs with a tenure between 38 to 61 months has been reduced by 0.65%.
The new interest rate for general citizens is 7.40% per annum, down from 8.05%, and for senior citizens, it is 7.90% per annum, down from 8.55%.
DCB Bank offers interest rates up to 8.05% on FDs
After the recent cut, DCB Bank now offers interest rates ranging from 3.75% to 8.05% per annum for FDs under Rs 3 crore, with tenures between 7 days and 10 years for general citizens.
For senior citizens, the rates range from 4.25% to 8.55%. The highest interest rate is offered on FDs with tenures of 19 to 20 months.
The bank operates 457 branches across India
Founded in the 1930s, DCB Bank had 457 branches across India as of December 31, 2024, serving around 25 lakh customers.
As of the same date, promoters held a 14.72% stake in the bank, which is listed on the stock market.
