The Reserve Bank of India’s Monetary Policy Committee held the repo rate at 6.5% in its August 2026 meeting — the ninth consecutive hold. For students with education loans, this means one important thing: no EMI increase this month.
But here’s the flip side that most finance reels won’t tell you: FD rates have already peaked. Several small finance banks like AU Small Finance and ESAF are still offering 8–8.5% on 1-year FDs — far better than the 3–4% a savings account pays. Once RBI starts cutting rates (expected Q1 2027), banks will drop FD rates within weeks.
The RBI also confirmed that inflation is tracking within its 4% target — which is good news for your grocery and hostel mess bills. Lower inflation = your money buys more.
If you have ₹5,000–₹20,000 sitting idle in a savings account, compare FD rates on Groww or Zerodha Coin right now and lock in at 8%+ before banks cut them. An FD earning 8.25% on ₹10,000 gives you ~₹825 interest after 1 year, tax-free if your total income is under ₹2.5 lakh.
📎 Source: RBI Monetary Policy Statement, August 2026 · LiveMint — RBI Policy Coverage
