FD Interest Rates- These banks gave a shock to the customers, how much will be the loss

FD Interest Rates: Bank of Baroda and Kotak Mahindra Bank have revised their FD interest rates for May 2025. Bank of Baroda has reduced interest rates for FDs with amounts less than Rs 3 crore, while Kotak Mahindra Bank has cut interest rates by 50 basis points (bps) for fixed-term FDs. These changes follow their earlier changes in April 2025.

Since the RBI changed the repo rate for the second time in the month of April, many public and private banks have changed their interest rates. If you are also a customer of Bank of Baroda or Kotak Mahindra Bank, then this news is useful for you. Yes, Bank of Baroda and Kotak Mahindra Bank have changed their fixed deposit (FD) interest rates in May 2025. Bank of Baroda has reduced the interest rate on deposits of less than Rs 3 crore.

Kotak Mahindra cuts rates by 50 basis points

Apart from this, Kotak Mahindra Bank has reduced the interest rate by 50 basis points for a specific period. These changes have happened after April 2025. This change is applicable to both common citizens and senior citizens. Let us know about the new FD interest rate of both the banks. Bank of Baroda has reduced the interest rate on FDs of less than Rs 3 crore for some period. The new rates are applicable from May 5, 2025. The bank had also changed the FD rate in April 2025.

What is the new reduced interest rate?

After the recent change, general citizens will get 4% to 7.10% interest on FDs of 7 days to 10 years in Bank of Baroda. The interest rate for senior citizens is 4.50% to 7.60%. Under the Baroda Square Drive Deposit Scheme (444 days), general citizens will get 7.10% interest, senior citizens will get 7.60% and super senior citizens will get 7.70% interest. Earlier these rates were 7.15%, 7.65%, and 7.75% respectively. This scheme is for FDs of 444 days and is applicable on deposits of less than three crore rupees.

Kotak Mahindra Bank’s new FD interest rate

Kotak Mahindra Bank has reduced the interest rate on 180-day FD from 7% to 6.50%. This change is effective from 5 May 2025. The bank had also changed the FD rates for some periods on 30 April 2025. Now general citizens will get interest ranging from 2.75% to 7.15% on FDs of less than Rs 3 crore. The interest rate for senior citizens is 3.25% to 7.65%.