RBI data after repo rate cut: Fixed deposits of 7% and more decline to 65%

The share of fixed deposits offering 7 per cent or more declined to 65 per cent in June 2025 compared to 66.9 per cent a year ago, according to the latest Reserve Bank of India (RBI) data. This has happened due to the repo rate cut announcements by the central bank this year.

"Reflection of recent monetary easing became evident in interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of ‘7 per cent and above’ declined to 65.0 per cent in June 2025 as compared to that of 66.9 per cent a year ago," RBI said in a report on deposits with Scheduled Commercial Banks till June 2025 on Friday, August 29, 2025.

The RBI has reduced the repo rate by 100 basis points in 2025, resulting in fixed deposit interest rate cuts by several banks, including SBI, HDFC Bank, and others.

As per the report, nearly 70 per cent of fixed deposits accounted for the original maturity bucket of one to three years in June 2025, whereas around 20 per cent of term deposits were short-term deposits with a maturity of less than one year.

Despite the rate cut, the amount of term deposits has only increased in a year.

"Term deposits recorded a growth (y-o-y) of 13.5 per cent, significantly outpacing the saving deposits growth of 5.4 per cent in June 2025; consequently, the share of term deposits in total deposits soared up to 62.2 per cent from 61.0 per cent in June 2024," said RBI.

However, the share of ‘Household’ deposits in banks, including FDs, witnessed a modest decline to 59.9 per cent in June 2025 as compared to that of 60.8 per cent in June 2024.

Senior citizen deposits accounted for nearly 20% of the total bank deposits till June 2025.

"Senior citizens owned 20.4 per cent of the total deposits as at end-June 2025," RBI said.

Deposits in private sector banks are growing faster than in public sector banks. However, the share of public sector banks in total FDs is still higher than private banks, according to RBI data

"Deposits growth (y-o-y) of public sector banks and private sector banks stood at 10.2 per cent and 12.4 per cent, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3 per cent and 36.0 per cent, respectively."

Interestingly, five states of India account for over 54% of total bank deposits, including current and savings deposits.

"Top five states/union territories (viz. Maharashtra, NCT of Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu) collectively accounted for 54.3 per cent of total deposits and 47.8 per cent of ‘Household’ deposits as at end-June 2025," RBI said.