Fixed deposits (FDs) have always been the most popular investment avenue in India due to their ‘guaranteed returns’. But, before investing in an FD scheme, it is very important for investors to compare the interest rates of different banks or financial institutions. This small step can help you earn higher returns.
The Reserve Bank of India (RBI) cut the repo rate by 50 basis points to 5.5% in June. Following the RBI move, several banks have reduced the interest rates on their FD schemes. These include public sector banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BOB), as well as large private sector banks like HDFC Bank, ICICI Bank, and Axis Bank.
Which bank reduced interest rates by how much
Let us know in detail which major bank has reduced its FD rates by how much and how much interest they are giving to the customers now:
State Bank of India
SBI, the country’s largest public sector bank, has cut interest rates on short-term FDs. The new rates have become effective from July 15, 2025.
46-179 days FD: Now 4.90% interest (was 5.05% earlier).
180-210 days FD: Now 5.65% interest (was 5.80% earlier).
FD from 211 days to less than 1 year: Now 5.90% interest (was 6.05% earlier).
SBI has also changed the short-term interest rates for senior citizens, so that they will also get the benefit of the revised rates.
Punjab National Bank
PNB’s new rates have become effective from June 18.
For general citizens (7 days to 10 years): Now 3.25%-6.70% interest.
For senior citizens (7 days to 10 years): Now 3.75%-7.20% interest.
For super senior citizens (7 days to 10 years): Slightly higher interest rate, 4.05%-7.50%. (Super senior citizens are usually above 80 years of age.)
Bank of Baroda
Bank of Baroda is offering interest rates on FDs with tenures ranging from 7 days to 10 years.
For general citizens: 3.50%-6.60% interest per annum.
For senior citizens: 4.00%-7.10% interest per annum.
Additionally, senior citizens will get an additional 0.50% interest on select tenures, further enhancing their returns.
HDFC Bank
HDFC Bank is offering interest rates for FDs less than ₹3 crore with tenures ranging from 7 days to 10 years.
For general citizens: 2.75%-6.60% interest per annum.
For senior citizens: 3.25%-7.10% interest per annum.
ICICI Bank
ICICI Bank’s FD rates are similar to HDFC Bank’s, applicable for deposits less than ₹3 crore.
For general citizens (7 days to 10 years): 2.75%-6.60% interest.
For senior citizens (7 days to 10 years): 3.25%-7.10% interest.
Axis Bank
Axis Bank is offering the following interest rates on FDs with tenures ranging from 7 days to 10 years.
For general citizens: 3.00%-6.60% interest.
For senior citizens: 3.50%-7.35% interest.
This private sector bank is also offering a tax-saving FD scheme for 5 5-year tenure:
For general citizens: @ 6.60%.
For senior citizens: @ 7.35% (which gives them an additional benefit).