HDFC Bank FD Rate 2025: HDFC Bank Announces Second Interest Rate Cut on Fixed Deposits (FDs) in June.
HDFC Bank, a leading private sector bank in the country, has delivered another blow to its customers. For the second time this June, the bank has reduced the interest rates on fixed deposits (FDs) and savings accounts. The bank announced that the new interest rates have been effective from June 25, 2025. Prior to this, the bank had reduced interest rates on select FD tenures on June 10.
This time, the bank has not only changed the rates on fixed deposits but has also reduced the interest earned on savings accounts. This consecutive double cut has forced customers to rethink, especially those investors who were looking to park their savings in a safe place.
Full Details of Changes in FD Rates
HDFC Bank has informed that the interest rate on fixed deposits with a tenure of less than 15 months and more than 18 months has been reduced from 6.60 percent to 6.35 percent for general customers. For senior citizen customers, the rate for this period was earlier 7.10 percent, which has now been reduced to 6.85 percent.
According to the latest information available on the bank's website, the bank is now offering interest rates ranging from 2.75 percent to a maximum of 6.60 percent to general customers on FDs ranging from 7 days to 10 years. Senior citizens, on the other hand, are getting returns from 3.25 percent to 7.10 percent.
Savings Accounts Also See Reduced Benefits
Apart from FDs, the bank has also cut down on the interest offered to savings account holders. Effective June 24, 2025, the bank has reduced the interest rate on all savings account balances by 25 basis points. Earlier, customers were receiving an annual interest of 2.75 percent, which has now been reduced to 2.50 percent.
This interest rate applies to the daily balance of customers' savings accounts and is paid on a quarterly basis. This means that customers will now receive less interest on their savings accounts every three months.
RBI Policy Changes Lead to Bank Rate Cuts
The main reason for this change in interest rates is the monetary policy of the Reserve Bank of India (RBI). The RBI recently cut its repo rate by 50 basis points, reducing it from 6 percent to 5.5 percent. The repo rate is the rate at which the central bank lends to other banks. When this rate decreases, the banks' funding cost (cost of funds) decreases.
Consequently, HDFC Bank has also changed the interest offered to its customers in order to balance its costs. This step is a setback for those who prioritize low-risk investment options like FDs.
Direct Impact on Customers' Wallets
This cut in interest rates will directly affect those who keep their savings in fixed deposits or maintain large sums in bank savings accounts. They will now receive lower returns on their investments compared to before. This cut is particularly concerning for senior citizens as a significant portion of their income depends on interest.
Long-Term Investors Need to Reconsider
According to market experts, these changes in interest rates may be seen further in the future if the RBI moves towards loosening its monetary policy. After this decision by the bank, customers who are considering FDs with a tenure of 1 to 3 years will now get lower returns than before.
This will not only affect general customers but also institutional investors and the cash management planning of companies. The decline in FD rates may impact corporate funding decisions.
Current Interest Rates Offered on Different FD Tenures
- 7 to 14 days: 2.75 percent (Senior Citizens: 3.25 percent)
- 15 to 29 days: 3.00 percent (Senior Citizens: 3.50 percent)
- 30 to 45 days: 3.50 percent (Senior Citizens: 4.00 percent)
- 46 to 60 days: 4.25 percent (Senior Citizens: 4.75 percent)
- 61 days to 6 months: 4.75 percent (Senior Citizens: 5.25 percent)
- 6 months 1 day to 9 months: 5.75 percent (Senior Citizens: 6.25 percent)
- 1 year to 15 months: 6.60 percent (Senior Citizens: 7.10 percent)
- Less than 15 months and more than 18 months: 6.35 percent (Senior Citizens: 6.85 percent)
Interest Rates May Rise in the Banking Sector
Following HDFC Bank's move, it is believed that other private and public sector banks may also change their interest rates. Especially if the RBI further cuts the repo rate, a further decline in returns on fixed income schemes is possible.
This could become a major trend in the banking sector, where interest rates on fixed deposits and savings accounts gradually decrease, and customers have to make changes in their savings planning.
