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HDFC Bank now offers FD interest rates between 2.75%–6.60% for regular customers and 3.25%–7.10% for senior citizens, following a revision in deposit rates
HDFC Bank has reduced the interest rate on savings account balances of Rs 50 lakh and above by 50 basis points—from 3.25% to 2.75% per annum. (Representative Image/PTI)
HDFC Bank customers are likely to see a shift in their account interest rates after the Reserve Bank of India (RBI) announced a cut in the repo rate. In response, HDFC Bank has decided to reduce interest rates on small savings instruments, including fixed deposits (FDs) and recurring deposits (RDs), impacting both new and existing depositors.
Effective June 10, 2025, HDFC Bank has revised its deposit interest rates, introducing notable cuts across select fixed deposit (FD) tenures. According to an Economic Times report, the bank has reduced rates by up to 25 basis points for deposits below Rs 3 crore, impacting both new and existing customers opting for these tenures.
The report highlighted that following the FD rate revision, HDFC Bank is now offering interest rates ranging from 2.75% to 6.60% for regular customers and 3.25% to 7.10% for senior citizens. Prior to the cut, the bank’s FD rates stood between 3% and 6.85% for general depositors and 3.5% to 7.35% for seniors.
Effective June 10, 2025, HDFC Bank has revised its savings account interest rates. According to The Economic Times report, the bank has reduced the interest rate on savings account balances of Rs 50 lakh and above by 50 basis points—from 3.25% to 2.75% per annum. With this revision, all savings account holders, regardless of their balance, will now receive a uniform interest rate of 2.75% per annum. Previously, balances below ₹50 lakh earned 2.75%, while higher balances enjoyed a 3.25% rate.
Not just HDFC Bank, but ICICI Bank, Canara Bank, and Kotak Mahindra Bank have also announced cuts in interest rates. This move will directly affect retirees, homemakers, and small investors who rely on fixed deposits (FDs) and recurring deposits (RDs) for regular income.
The Reserve Bank of India recently cut the repo rate by 50 basis points, bringing it down from 6% to 5.5%, in an effort to boost economic growth. This move is now reflecting across the banking sector, with implications for both fixed deposit investors, who face lower returns, and borrowers, who may benefit from reduced loan interest rates.
A lower repo rate allows banks to offer cheaper loans, encouraging borrowing and spending. However, it also leads to a reduction in interest rates on savings, which means lower returns for depositors.
Given these changes, investors may need to explore alternative investment options, according to experts. Similar rate cuts are also expected from other banks in the coming weeks.
Those saving through recurring deposits (RDs) will now receive lower interest, potentially leading to reduced returns. However, financial advisors recommend maintaining some amount in RDs for emergency funds. Despite the rate cut, RDs continue to serve as a secure option for unforeseen financial needs.
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