FD Interest Rate: Investors who have enjoyed favorable interest rates on fixed deposits (FDs) in recent years may be taken aback, as banks have begun to lower these rates. HDFC Bank, the largest private bank in the country, has reduced interest rates on certain FDs under Rs 3 crore, effective April 1, 2025. Additionally, the State Bank of India (SBI) has terminated its special FD scheme, Amrit Kalash, which had offered an appealing interest rate of 7.10% for a duration of 400 days. This scheme, which commenced in April 2023, concluded on March 31.
The onset of the new financial year has not been favorable for investors. In anticipation of the upcoming monetary policy meeting of the Reserve Bank of India (RBI), HDFC Bank, Yes Bank, and Bandhan Bank have also adjusted their FD interest rates. These changes follow the RBI’s decision in February 2025 to lower the repo rate by 0.25% for the first time in nearly five years. Experts suggest that the RBI may consider another reduction in the repo rate during the meeting scheduled for April 7 to 9. It is believed that global trade tariffs could hinder growth, necessitating policy adjustments, such as interest rate cuts. Furthermore, with inflation now under control, the RBI may find a favorable opportunity to lower rates.
HDFC Bank
HDFC Bank has specifically reduced interest rates on FDs with two unique tenures. The bank has decreased the interest rate on 35-month FDs (equivalent to 2 years and 11 months) by 35 basis points (0.35%). Additionally, the interest rate on 55-month FDs (equivalent to 4 years and 7 months) has been lowered by 40 basis points (0.40%). Consequently, both of these FDs now offer an interest rate of 7% per annum. Senior citizens will continue to receive an additional 0.5% interest as before.
Yes Bank
Yes Bank has decreased the interest rates on fixed deposits (FDs) for certain tenures by 0.25%. The current interest rate for FDs with a duration of 12 to 24 months is now 7.75%, down from the previous rate of 8%.
Bandhan Bank
Bandhan Bank has revised the interest rates for bulk fixed deposits exceeding Rs 3 crore, effective from April 3, 2025. The bank now offers an interest rate of 8% per annum on callable FDs with a tenure of 12 to 13 months. In contrast, non-callable FDs of the same duration provide customers with an interest rate of up to 8.3%. It is important to note that callable FDs can be closed early by the bank if necessary, while non-callable FDs cannot be withdrawn before the agreed-upon term.