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The last chance to earn a hefty from FD, all banks are going to reduce interest rates

REPO RATE, RBI REPO RATE, RBI, Reserve Bank of India, Loan, Home Loan, Car Loan, Home Loan Interest

Photo: Freepik FD interest rates will also fall after the repo rate decreases

Rbi repo rate: The Reserve Bank of India finally announced the cut in interest rates after 5 years. RBI Governor Sanjay Malhotra on Friday announced a reduction of 0.25 percent in the repo rate. The Reserve Bank last cut the repo rate by 0.40 percent in May 2020. Let us tell that, just as ordinary people take loans from banks for their needs, in the same way banks also take loans from RBI for their needs. The interest rate at which RBI gives loan to banks is called repo rate.

FD interest rates will also fall after the repo rate decreases

After the repo rate is reduced by the Reserve Bank, banks will get cheaper loans, then the bank will also give cheaper loans to its customers. This will directly affect all the loans including home loan, car loan and all loans will be reduced. Due to cheap loan, the monthly EMI of the people will also be reduced and this will benefit crores of people. However, this decision of the Reserve Bank will also harm a class. Those who are not having any loan and they invest in FD will have to bear the loss of this decision. Actually, due to reduced repo rate, the interest rates of the loan are reduced, on the other hand, the bank FD also reduces the rates of interest.

Make FD done before interest rates decrease

After the repo rate is reduced by the Reserve Bank of India, now all banks will gradually cut the interest rates of loan. In addition, all banks will also start cutting the interest rates of FDs. In such a situation, if you are planning to do FD, then go to banks as soon as possible and get FD done. If you spend more time, the bank will reduce the interest rates of FD and will not get bumper interest on FD right now. Let us tell you that now general customers are getting maximum interest of up to 7.30 percent on FD, while senior citizens are getting maximum interest of up to 7.80 percent.

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