HDFC Bank, India’s largest private-sector lender, has revised its interest rates on select fixed deposits (FDs) below ₹3 crore, effective April 1. This change comes nearly two months after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) reduced the repo rate by 25 bps.

The bank has reduced FD rates by 35 bps for deposits with a tenure of 35 months and by 40 bps for deposits with a tenure of 55 months. As a result, the new interest rate for these tenures is now 7% for deposits up to ₹3 crore. Senior citizens, however, will continue to receive an additional 0.50% on their deposits.

In July 2024, HDFC Bank had introduced special FD schemes offering 7.35% interest for 35-month tenures and 7.40% for 55-month tenures—among the highest rates in the market. These schemes were launched as part of the bank’s strategy to strengthen deposit inflows and support its credit growth.

As of April 1, the highest interest rate offered by the bank is 7.25% for deposits with a tenure of up to 21 months. Beyond this period, the revised rate is set at 7%. The rate adjustments follow the RBI’s first policy rates by 25bps cut in nearly five years.

Despite the policy rate reduction, banks have been cautious in lowering deposit rates due to the ongoing challenges in deposit mobilization.

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