Major Indian Banks Revise FD Rates Following RBI Rate Cut
Following the Reserve Bank of India's 25 basis point cut in the repo rate to 5.25%, major Indian banks have adjusted their fixed deposit rates. Current FD rates for deposits under ₹3 crores range from 5.90% to 6.60% across various tenures. State Bank of India, HDFC Bank, Axis Bank, ICICI Bank, Bank of Baroda, Kotak Mahindra Bank, and Canara Bank have all updated their rates. Most banks offer around 6.25% for one-year tenures, with ICICI Bank providing the highest rate of 6.60% for 2-5 year deposits. Senior citizens continue to receive preferential rates, typically 50 basis points higher than standard rates.
*this image is generated using AI for illustrative purposes only.
Major Indian banks have revised their fixed deposit rates following the Reserve Bank of India's recent monetary policy decision to cut the repo rate by 25 basis points to 5.25%. The central bank's move, aimed at stimulating economic growth by making borrowing cheaper for commercial banks, has created a ripple effect across the banking sector's deposit offerings.
Fixed deposits continue to remain a preferred investment avenue for conservative investors seeking stability and assured returns. However, the RBI's rate reduction has triggered a downward trend in FD interest rates, as banks no longer need to attract funds at higher rates when they can borrow from the central bank at cheaper costs.
Major Indian banks including State Bank of India (SBI) and HDFC Bank have adjusted their fixed deposit rates in response to the RBI's decision. Current rates for fixed deposits now range from 5.90% to 6.60% across various tenures.
Current Fixed Deposit Rate Comparison
The following table presents the latest FD rates offered by major Indian banks for deposits under ₹3 crores:
| Bank | 1 Year Tenure | 2 Year Tenure | Senior Citizen (1 Year) | Senior Citizen (2 Year) | Effective Date |
|---|---|---|---|---|---|
| State Bank of India | 6.25% | 6.40% | 6.75% | 6.90% | Dec 15 |
| HDFC Bank | 6.25% | 6.45% | 6.75% | 6.95% | Dec 17 |
| Axis Bank | 6.25% | 6.45% | 6.75% | 6.95% | Dec 26 |
| ICICI Bank | 6.25% | 6.60% | 6.75% | 7.20% | Dec 26 |
| Bank of Baroda | 6.25% | 6.50% | 6.75% | 7.00% | - |
| Kotak Mahindra Bank | 6.25% | 6.40% | 6.75% | 6.90% | Dec 5 |
| Canara Bank | 5.90% | - | 6.40% | - | - |
Bank-Specific Rate Details
State Bank of India
SBI has set its rates at 6.25% for FDs between one year and less than two years, with 6.40% for two to less than three years. The country's largest lender offers enhanced rates for senior citizens at 6.75% and 6.90% respectively for these tenures.
HDFC Bank
HDFC Bank provides 6.25% interest for one-year tenure (1 year to less than 15 months), 6.35% for 15 months to less than 18 months, and 6.45% for two years. Senior citizens receive preferential treatment with rates of 6.75% for one year and 6.95% for two years.
ICICI Bank
ICICI Bank stands out with competitive longer-term rates, offering 6.60% for deposits from 2 years and 1 day to 5 years, while senior citizens can earn 7.20% for the same tenure - among the highest rates currently available.
Market Impact and Considerations
The uniform rate reduction across major banks reflects the direct impact of monetary policy on deposit markets. Most banks now offer similar rates around 6.25% for one-year tenures, indicating market standardization following the RBI's policy shift.
Senior citizens continue to benefit from preferential rates, typically receiving an additional 50 basis points across all banks and tenures. Canara Bank offers the most conservative rates at 5.90% for general customers, while ICICI Bank provides the most attractive long-term rates for senior citizens.
Investors should note that these rates apply specifically to deposits under ₹3 crores and are subject to change without prior notice. The rates mentioned are current as of the latest updates, and potential depositors are advised to verify current offerings directly with their chosen banks before making investment decisions.
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