Federal Bank has slashed both its savings and fixed deposit rates by 25 basis points, effective April 17, 2025.Savings account holders will now earn 2.75% on balances up to ₹50 lakh, down from 3%. For balances up to ₹50 crore, the revised rate is 5.25%.The bank has also lowered rates for other balance slabs.
For fixed deposits below ₹3 crore, the bank has revised tenures. Customers investing for 1 year to 443 days will now earn 7% interest.The move follows similar cuts by other major banks. ICICI Bank trimmed its savings account interest rate by 25 bps on April 16, bringing returns on lower balances to 2.75%.Axis Bank also revised its savings account rates on April 15. It now offers:
2.75% for balances below ₹50 lakh
3.25% for balances between ₹50 lakh and ₹2,000 crore
MIBOR + 0.70% for balances above ₹2,000 crore
The revised rates at Axis apply to domestic, NRE, and NRO accounts.HDFC Bank was among the first to cut savings rates after the RBI’s 25-bps repo rate reduction last week.The central bank’s move has triggered a broader trend of rate cuts across the banking sector, impacting both savings and fixed deposits.ALSO READ | RBI repo rate cut impact: These banks have reduced fixed deposit interest rates
