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With another Monetary Policy Committee (MPC) meeting scheduled from April 7 to April 9, markets are anticipating an easing of policy rates. This prompted the banks to cut the FD rates, media reports stated.
HDFC Bank, India’s largest private lender, revised its FD interest rates for deposits below ₹
3 crore, effective from April 1, 2025. The bank has also discontinued its Special Edition FD scheme, which previously offered up to 7.40% for specific tenures.
The key rate cuts were on the 35-month and 55-month FDs. The rate of interest on 35-month deposits is now 7%; it saw a reduction of 35 basis points. Meanwhile, the interest rate of 55-month deposits was reduced by 40 basis points, and it too is 7% now.
According to a Business Standard report, the highest rate offered is 7.25% for tenure between 10 and 21 months. Moreover, senior citizens continue to receive an additional 0.50% across all tenures.
Yes Bank, as per the reports, has lowered its FD rates by 25 basis points on select tenures. For their general customers, the bank now offers 3.25% to 7.75% interest on deposits below ₹3 crore. For senior citizens, the interest rate ranges from 3.75% to 8.25% compared to a previous high of 8.50%. Meanwhile, currently, the highest rate of interest is 7.75% for deposit tenures between 12 and 24 months.
Punjab & Sind Bank has also updated its FD interest rates, effective from April 1, 2025. They have dropped their popular 33-day and 555-day FD options, which gave 7.72% and 7.45% interest, respectively.
Meanwhile, the rate for 444-day FD has dipped from 7.40% to 7.10 %. The 777-day deposit is now at 6.50% after it saw a drop of 0.75%. The 999-day deposit’s rate was also slashed, and it now offers 6.35 %.
A report in Economic Times stated that the bank, however, has extended the deadline for its special FD rates till June 30, 2025.
Bandhan Bank revises rates for bulk deposits.
Bandhan Bank has revised its interest rates for bulk deposits exceeding ₹3 crore, effective from April 3, 2025. The callable bulk deposits with tenures of under 13 months will now earn less than 8% interest. Meanwhile, non-callable bulk deposits for the same duration will earn up to 8.3% interest.
Should investors lock in FD rates now?
BankBazaar CEO Adhil Shetty said that with interest rates on the decline and more repo rate cuts expected this year, it is the right time for conservative investors to lock in current FD rates.
Shetty told Business Standard that they recommend tenures between one and two years for those seeking short-term stability.
