Interest rates News

In 2025, banks are offering personal loans at interest rates ranging from 9.50 per cent to 16.65 per cent, with processing fees between 0.5 per cent and 3.5 per cent. Borrowers should compare rates and charges before applying.  

Government Small Saving Schemes: The central government has decided to maintain the interest rates on various small savings schemes for the January-March quarter of the financial year 2024-25 (Q4FY25). This means that investors can expect the current interest rates to remain unchanged for the final quarter of FY 2024-25. 

This decision will directly impact millions of citizens across India who have invested in various small savings schemes. Some popular schemes include the Senior Citizen Savings Scheme, Monthly Income Account Scheme, National Savings Certificate, Public Provident Fund Scheme, Kisan Vikas Patra, Sukanya Samriddhi Account Scheme, among others.

Indian stocks declined, though marginally, on Thursday morning Following US FED rates hike. Raising interest rates is a monetary policy instrument, helping the inflation rate decline. Indian currency rupee breached the psychologically crucial 80 mark again to touch 80.44.

New Interest rates on deposits below 2 crore will be effective from 10 August. Yes Bank gives 0.50 bp additional rates on normal interest rate for senior citizens. Fixed Deposits in Yes Bank are available between minimum 7 days to maximum 10 years.

For fixed deposits maturing in 7 days to 45 days, Bank of Baroda is offering an interest rate of 2.80%. FDs with a term period of 46 days to 180 days will attract an interest rate of 3.7%. FDs maturing in 181 days to 270 days, investors can receive an interest rate of 4.30%.

A one-year to three-year Post Office Time Deposit (TD) now pays 5.5 percent interest. Because there is only a 4.0 percent interest rate available, your money will double in 18 years. The current rate of interest on Post Office Recurring Deposits (RD) is 5.8%.

Section 80C of the Income Tax Act allows for tax deductions on investments up to Rs 1.5 lakh. Suryoday Small Finance Bank pays up to 6.75 percent interest on tax-saving deposits. Yes Bank is giving up to 6.5 percent return on tax-saving deposits.

According to statistics provided by BankBazaar, small finance institutions are offering greater interest rates in the face of dropping interest rates. To attract new retail customers, small finance banks are giving greater interest rates on savings accounts.

The daily smaller revisions in the prices of petrol and diesel have resulted in a snowball effect. The prices of essential commodities have increased by more than 2x. The rise in petrol prices is leading to a hike in transportation costs.

RBL Bank offers a good interest rate of 4.50% per annum to 6.25% on daily balance. Bandhan Bank provides 3.0 per cent per annum to 6.0 per cent per annum interest rates. IndusInd Bank savings account interest rate comes in the range of 4 per cent to 5.50 per cent up to Rs 1 crore daily balance.

One such scheme is Post Office term deposit schemes which are almost similar to bank FDs and it witnesses a quarterly revision of rates. The government withdrew the decision of bringing down the rate of interest on Small Savings Schemes and thus, it will remain unchanged.

Known as HDFC Senior Citizen Care, HDFC Bank’s scheme gives a 75 bps higher interest rate. Called ICICI Bank Golden Years, this bank gives an 80 bps higher interest rate on the deposits. Bank of Baroda gives 100 bps higher on the deposits.

The rate war also comes on the back of continuous prodding by the monetary authority which has slashed the repo rates by a whopping 200 bps since March 2020 to 4 percent to help revive the economy ravaged by the pandemic, but still, credit demand remains under 6 percent. According to the RBI data, home loan growth decelerated in FY21 due to the pandemic, though the decline in fact began in March 2020. Unlike personal loans, housing loans involve collateral. In case of default, banks can seize the asset and auction it off.

Generally, an interest rate cut in deposits is seen as a precursor to a lending rate cut. The moves by lenders including ICICI Bank and Axis Bank come amid easing liquidity conditions and also within days of a rate cut by the Reserve Bank earlier this month.

Modi Government may announce a new scheme for Farmers, According to Reuters, Farmers may get loans without any interest rate.

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Modi Government may announce a new scheme for Farmers, According to Reuters, Farmers may get loans without any interest rate.

Modi Government may announce a new scheme for Farmers, According to Reuters, Farmers may get loans without any interest rate.

The revision in interest rates does not affect old investments except for PPF and SSY.