HDFC Bank has announced a reduction in its fixed deposit (FD) interest rates by up to 50 basis points (bps), affecting various tenure categories. This adjustment lowers the interest rates for general citizens to a range between 3% and 7.10%, while senior citizens see rates between 3.5% and 7.55%. The revised rates apply to specific tenure brackets, such as the 15 months to less than 18 months category, which now offers 7.05%, down from 7.10%. Additionally, deposits maturing in 18 months to less than 21 months have been reduced by 20 bps, now offering 7.05% instead of the previous 7.25%.[1]
The adjustments reflect HDFC Bank’s strategic response to broader economic conditions and market dynamics. For fixed deposits held for 21 months to two years, the rate has now decreased to 6.70% from 7.00%, representing a cut of 30 bps. For tenures spanning two years and one day to less than three years, the FD rate has been reduced by 10 basis points, now standing at 6.90%. Long-term FDs, from five years and one day to ten years, have experienced a more significant reduction, with rates now at 6.50% from the previous 7.00%, indicating a 50 bps cut.
These changes also coincide with adjustments to HDFC Bank’s savings account interest rates, which were recently revised. Effective April 12, 2025, savings account interest rates have been lowered across multiple deposit slabs. For balances under Rs 50 lakh, the interest rate has been reduced to 2.75% per annum, down from the earlier rate of 3.00%. For balances of Rs 50 lakh and above, the interest rate now stands at 3.25% per annum. These revisions follow a three-year period during which savings interest rates remained unchanged, marking a shift in the bank’s financial strategy
The updated FD rates are part of HDFC Bank’s broader financial strategy to align with current economic trends. This decision also involves the bank discontinuing its special edition FD scheme, which had previously offered higher interest rates, effective from April 1, 2025.
HDFC Bank’s adjustments in interest rates are reflective of a broader trend within the banking industry, where institutions are recalibrating their strategies to align with evolving market conditions. With competitors such as SBI, ICICI, and PNB closely monitoring market shifts, HDFC Bank’s recent rate changes mark a significant development in its financial strategy.
IDBI and ICICI banks adjust FD Rates
IDBI Bank and ICICI Bank have revised their fixed deposit (FD) interest rates. The RBI reduced the repo rate by 25 basis points on 9th April 2025, lowering it from 6.25% to 6%. This decision has triggered adjustments in interest rates across various financial products, including fixed deposits at major banks. IDBI Bank has responded by discontinuing its special FD offerings for tenures of 300 and 375 days, potentially impacting investors who favour shorter-term deposits.
With the discontinuation of these special FDs, IDBI Bank has also announced new interest rates for its existing fixed deposit schemes. For the 444-day tenure, the bank now offers a 7.25% interest rate for general citizens, with enhanced rates of 7.75% and 7.90% for senior and super senior citizens, respectively. Similarly, the 555-day FD is set at 7.30% for general citizens, increasing to 7.80% for seniors and 7.95% for super seniors. For the 700-day tenure, interest rates have been adjusted to 7% for general citizens, 7.50% for seniors, and 7.65% for super seniors. These adjustments reflect IDBI’s strategic focus on offering competitive rates to attract long-term depositors.
Meanwhile, ICICI Bank has revised its FD rates downward across various tenures, aligning with the broader trend influenced by the RBI’s rate cut. The interest rate for FDs ranging from 15 to 18 months has been reduced by 45 basis points to 6.8%. For tenures between 18 months to 2 years, the rate has decreased by 20 basis points to 7.05%. ICICI Bank continues to offer a consistent 6.9% interest rate for deposits maturing between 2 years 1 day and 5 years, as well as for its 5-year Tax Saver FD. These changes indicate ICICI’s approach to balancing competitive rates while adapting to monetary policy shifts.
The adjustments in FD rates by these banks come amid a broader context of fluctuating interest rates in the financial sector. Banks often adjust their deposit and loan rates in response to changes in the repo rate, which is the rate at which the RBI lends money to commercial banks. A lower repo rate generally aims to stimulate economic activity by making borrowing cheaper, but it can also result in reduced interest income for depositors. In this context, IDBI and ICICI are strategically positioning their offerings to remain attractive to depositors while managing their interest margins effectively.