Latest FD Rates After RBI Rate Cut: HDFC, SBI, Axis, Canara Bank And More (Dec 2025)

Several top Indian lenders, including HDFC Bank and the State Bank of India, have announced changes to their interest rates of fixed deposits across tenures. The revision in FD interest rates follows the Reserve Bank of India’s (RBI) decision to reduce the repo rate in its December monetary policy meeting, making borrowing cheaper for commercial banks.

In its December policy review, the RBI reduced the repo rate by 25 basis points to 5.25%. The move aimed at stimulating economic growth helps banks to borrow money from the RBI at cheaper rates.

A reduction in the repo rate by the RBI triggers a downward revision in the interest rates for select savings instruments like FDs. While a reduction in repo rate often leads to home and other floating rate loans becoming cheaper, FDs become less attractive investment assets.

This is mainly because after every repo rate cut by the RBI, banks don’t need to attract more funds from investors. India’s largest lender, HDFC Bank, is among the top lenders that have lowered the FD rates across select tenures.

From Dec. 17 onwards, HDFC Bank offers a 6.25% interest rate on an FD for a one-year tenure. Other top lenders like SBI and Axis Bank are also offering identical rates for similar tenures. For FDs with tenures of 18 months to 2 years, HDFC Bank offers an interest rate of 6.45% per annum. These changes are applicable for deposits up to Rs 3 crore.

India’s largest lender SBI, which announced changes to interest rates from Dec. 15, offers 6.25% returns for FDs between one year to less than two years. Axis Bank offers similar interest rates for tenures between one year and 375 days. Canara Bank has revised its interest rates for FDs with a maturity period of 1 year to 15 months to 5.9%.

To be clear, these rates do not apply to senior citizens, who are offered marginally higher returns. Investors should note that even these marginal changes in FD rates can have a key impact on their long-term financial planning. Hence, they should closely track such policy developments to safeguard their savings and investments amid falling interest rates.

Disclaimer: To find the latest FD rates, it’s advisable to check the Fixed Deposit section on the official websites of the respective banks. Rates are subject to change without notice, and the rates provided in the table are per the latest updates as of December 23, 2025.