Fixed Deposit Interest Rate: After the change in monetary policy by the Reserve Bank of India (RBI), the country’s big banks have started cutting the interest rates of fixed deposits (FD) and savings accounts. This indicates that the cycle of interest rates is now downward. Major banks of the country like SBI, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank have recently implemented new rates. Let us know how much interest you are getting in which bank now.
State Bank of India (SBI) cuts FD rates by up to 75 bps
The country’s largest public sector bank SBI has reduced the interest rates on fixed deposits by up to 75 basis points (bps) on various tenures. The new rates have come into effect from June 15, 2025. Now common citizens will get interest ranging from 3.50% to 6.50% on FDs ranging from 7 days to 10 years. Senior citizens will continue to get 50 bps additional interest on certain tenures. Apart from this, SBI has also reduced the interest rate on savings account from 2.70% to 2.50%.
HDFC Bank new rates
HDFC Bank has reduced interest rates on FDs of less than Rs 3 crore. Now the interest rate on these FDs will be between 3.00% to 7.00%. The highest interest rate of 7.00% is being given on FDs of less than 2 years and less than 3 years. Along with this, the bank has also reduced the interest rate on savings account by 25 bps. Now 3.00% interest will be given on balance less than Rs 50 lakh and 3.50% interest will be given on balance of Rs 50 lakh or more.
ICICI Bank also reduced FD rates
ICICI Bank has changed the interest rates on FDs of less than Rs 3 crore from June 12, 2025. Now the interest rates range from 3.00% to 7.20%. The highest interest of 7.20% is being given on FDs of 13 months to 2 years.
There has been a reduction of 5 to 25 bps on other tenures as well. Especially the short-term deposits are seeing the biggest impact.
Kotak Mahindra Bank implemented new rates
Kotak Mahindra Bank has changed the FD rates from 12 June 2025. Now the interest rates on FDs of less than Rs 3 crore in the bank range from 2.75% to 7.25%. The highest interest rate of 7.25% is being offered on FDs of 390 days. There has been a reduction of 5 to 15 bps on other periods.
impact of reduction in interest rates
The direct impact of the reduction in repo rate by RBI is being seen on the returns on deposits. Usually, banks adjust the rates of FD and savings account as per the change in policy rate. In the coming days, more banks can take steps in this direction. If investors want to get better returns, then investing in long term FD or considering alternative fixed-income instruments can be a good option.
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