Effective April 1, 2025, several banks in India have implemented changes to their banking policies, including adjustments to minimum balance requirements and interest rates on Fixed Deposits (FDs) and savings accounts. Here’s a comprehensive overview:
1. Revised Minimum Balance Requirements
Banks such as State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank have updated their minimum balance policies based on the location of the account:
- Urban Areas: ₹3,000 – ₹5,000
- Semi-Urban Areas: ₹2,000 – ₹3,000
- Rural Areas: ₹500 – ₹1,000
Failure to maintain the required minimum balance may result in penalties.
2. Increased Interest Rates on Fixed Deposits
Several banks have revised their FD interest rates, offering higher returns to customers. For instance:
- Indian Bank: As of March 26, 2025, Indian Bank offers interest rates ranging from 2.80% to 7.75% per annum, depending on the tenure and deposit amount.
- Other Banks: As of March 2025, top banks are offering the following interest rates on FDs for general citizens:
- Axis Bank: 3.00% to 7.25% per annum
- Bandhan Bank: 3.00% to 8.05% per annum
- Bank of Baroda: 4.25% to 7.15% per annum
- Central Bank of India: 3.50% to 7.25% per annum
- HDFC Bank: 3.00% to 7.35% per annum
3. Changes to Savings Account Interest Rates
While specific details on savings account interest rate adjustments are limited, it’s advisable to contact your bank directly or visit their official website for the most accurate and up-to-date information regarding any changes to savings account interest rates.
Recommendations for Account Holders:
- Maintain Required Minimum Balance: Ensure your account meets the updated minimum balance criteria to avoid penalties.
- Stay Informed: Regularly check your bank’s official communications for updates on interest rates and other policy changes.
- Evaluate FD Options: With increased FD interest rates, consider investing in fixed deposits to benefit from higher returns.
By staying informed and proactive, you can effectively navigate these changes and optimize your banking experience.
