HDFC Bank has announced the slashing of fixed deposit interest rates, which shall apply on some tenures for deposits under ₹3 crore up to 0.50 percent (50 basis points). The changes take effect from April 19, 2025. It is as per the merging change back of the repo rate by the Reserve Bank of India (RBI), which prompted several banks to adjust the interest on savings and FD accounts.
HDFC Bank had previously reduced the savings account interest rate by 0.25% (25 basis points) and hinted at short and long-term trends of falling rates on traditional savings instrument avenues.
Revised HDFC Bank FD Rates: Important Changes
After this revision, the interest rates applicable for normal citizens’ fixed deposits will now be between 3.00% to 7.10%, while the old rates for senior citizens will be between 3.50% to 7.55%. Here are some important changes:
- 15 to 18 Months Tenure: Reduced from 7.10% to 7.05% (5 bps cut)
- 18 to 21 Months Tenure: Slashed from 7.25% to 7.05% (20 bps cut)
- 21 Months to 2 Years Tenure: Lowered from 7.00% to 6.70% (30 bps cut)
No Change in 1-Year FD Rates
The 1-year FD interest rates have not changed for the general public at 6.60% and 7.10% for senior citizens, while the maximum FD rate, that is 7.55%, for senior citizens is still applied on deposits of 15 to 18 months.
What Should Now FD Investors Do?
With the continuing decline in interest rates, now may be the time for an FD investor to reassess how he/she is making money through FDs. Here are a few options:
Lock-in Rates Soon- If you had been planning to open an FD, you might as well do it before more rate cuts are announced, since it would help in getting a better return.
Check Out Senior Citizen FDs- Older adults are still getting much better rates, and thus, FDs are worth.
Diversification of Investment- Try some other asset classes such as debt funds, corporate FDs, or RBI bonds. You’ll get better returns through them.