Repo Rate Up: Your FD Earns ₹7,500 More?

RBI raised the repo rate to 5.50%. Banks may now raise FD rates by 5–25 basis points. Even a small rate bump can put thousands of extra rupees in your pocket at maturity — here's how much.

Here's what happened: RBI raised the repo rate by 25 basis points to 5.50%, signalling a tighter monetary policy stance that typically pushes banks to offer higher deposit rates.. A 25 bps FD rate increase on ₹10 lakh for one year translates to approximately ₹2,500 in additional interest at maturity — more for longer tenures.. Existing FD holders do NOT automatically benefit; higher rates apply only to new deposits or renewals made after the bank officially revises its rate card..

What you should do: Check your bank's updated FD rate card online before renewing any maturing deposit — compare across at least 2–3 banks, including small finance banks.. If your FD matures in the next 30–60 days, consider parking funds in a liquid fund or savings account temporarily while you wait for the revised rates to kick in.. Compare rates on FD aggregator tools to find who is passing on the hike fastest — small finance banks like Ujjivan, Jana, or ESAF often revise upward sooner..

Pro tip: Book a new FD instead of auto-renewing — auto-renewal locks you into the old rate the moment the FD matures, even if your bank raised rates that same week.

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