HDFC Bank Cuts FD Rates: Latest Fixed Deposit Interest Rates Offered by Top Banks

India’s largest private lender, HDFC Bank, announced a reduction in its fixed deposit (FD) interest rates across multiple tenures, effective from Dec. 17, 2025. This comes after the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points to 5.25% in its December monetary policy review. 

Lower repo rates reduce borrowing costs for banks and this leads to a downward revision in interest rates for certain products like fixed deposits (FDs). Typically, banks reduce FD interest rates for new investments after every repo rate cut by the RBI, as they don’t need funds from investors.

However, a repo rate cut is a positive signal for borrowers as the banks often pass the benefit to customers by reducing interest rates on long-term loans. This brings down the Equated Monthly Instalments (EMIs), reducing the overall loan burden.

These changes can have a significant impact on financial planning as the interest rates on FDs can influence the overall returns on such investments. As a result, consumers are advised to stay updated about the latest changes in FD rates to safeguard their savings and investments amid falling interest rates.

At present, HDFC Bank offers 6.25% interest on fixed deposits with tenures ranging from one year to 15 months for deposits up to Rs 3 crore. Meanwhile, the State Bank of India (SBI) has also cut its FD rates from Dec. 15 across multiple tenures. For one year to less than two years, its FD interest rate stands at 6.25% per annum, according to the lender’s website.

Axis Bank is also offering a similar interest for deposits on tenures between one year and 375 days. For deposits made for up to 12 months, Yes Bank is offering 6.50% interest on FDs, the bank’s website shows.

To be clear, these interest rates apply to fixed deposits of up to Rs 3 crore. Additionally, most banks offer slightly higher FD interest rates for senior citizens compared to regular customers.