Banks Slash FD Rates After RBI Repo Cut: What It Means For Your Savings

• RBI's Monetary Policy Committee cut the repo rate by 25 basis points, from 5.50% to 5.25%.
• Major banks including SBI, HDFC Bank, ICICI Bank, Axis Bank, and Canara Bank have reduced their fixed deposit (FD) interest rates.
• SBI decreased FD rates for general citizens by 5 bps for 2-3 year tenure, effective Dec 15.
• HDFC Bank's revised rates, effective Dec 17, saw a 15 bps cut for 18-21 month FDs.
• New FDs are generally less lucrative for savers, but senior citizens continue to receive higher interest rates across all banks.

Why It Matters: Banks have reduced FD rates following RBI's repo rate cut, impacting savers, though seniors get better rates.