Between FD rate cuts and ATM fee hikes, the financial landscape is getting more expensive, and your wallet is feeling the pinch.

The Reserve Bank of India (RBI) has announced that it’s lowering FD (Fixed Deposit) rates, and the impact is already being felt. While FDs have long been a safe haven for risk-averse investors, the new rates are less attractive, especially for those who rely on interest income. The average FD rate has dropped from around 7.1% to 6.5%, making it harder for savers to see returns on their money.

On the flip side, ATM withdrawal charges are on the rise. From ₹21 to ₹25 per transaction, these charges may seem minor, but for those who rely on ATM withdrawals for day-to-day transactions, they add up quickly. What’s more, this hike is particularly painful for the lower-income population, who may not have easy access to online banking and rely heavily on ATMs.

While some argue that these changes are part of a broader effort to encourage digital banking and reduce cash dependence, it’s clear that these shifts are making life more difficult for the average consumer. With FD rates dropping and transaction costs increasing, many are feeling the squeeze. Whether these changes will lead to greater long-term financial stability or simply serve to further stress the everyday person’s budget remains to be seen.

It’s a reminder that in the financial world, it’s always wise to stay ahead of the curve. In times like these, being financially savvy isn’t just about knowing where to invest—it’s about being aware of how these small shifts affect your spending and saving habits.