Fixed Deposit: SBI lowers interest rates on FDs; HDFC Bank and Axis Bank also make changes..

Fixed Deposits (FDs) are considered a safe investment option. Banks have recently revised their FD interest rates. HDFC Bank, Axis Bank, and Federal Bank have either raised or adjusted interest rates for FDs across various tenures. Senior citizens stand to benefit the most, as they can earn up to 7.25% annual interest on FDs of certain tenures.

On the other hand, SBI has reduced interest rates on bulk FDs (deposits of ₹3 crore and above). This implies that while the situation may improve for those opening smaller or standard FDs, investors depositing large sums might receive lower interest.

**HDFC Bank Raises Interest Rates**

HDFC Bank has increased interest rates by 0.10% (or 10 basis points) for senior citizens on FDs with specific tenures. The new rates came into effect on August 19, 2026. Senior citizens will now earn 7.10% interest on FDs with tenures ranging from '3 years 1 day' to 'less than 4 years 7 months'. Previously, the rate for this tenure was 7%. This rate applies to deposits of less than ₹3 crore.

**Up to 7.25% Interest at Axis Bank**

According to a Moneycontrol report, Axis Bank implemented new interest rates for FDs under ₹3 crore starting August 26, 2026. Senior citizens will earn interest ranging from 3.50% to 7.25%, depending on the tenure. The highest rate of 7.25% is available on FDs with tenures of 5 to 10 years. Meanwhile, the maximum interest rate for general customers is 6.50%.

**SBI Lowers FD Interest Rates**

While private banks have raised certain FD rates, SBI has reduced interest rates on bulk FDs (lump-sum fixed deposits of ₹3 crore or more). The new rates are effective from August 15, 2026. Interest rates on bulk FDs with tenures ranging from 7 to 179 days have been reduced by 0.25%. Meanwhile, the rate for deposits with tenures of 180 to 210 days has been lowered by 0.10%. These changes apply to both general customers and senior citizens.

Interest up to 7.25% at Axis Bank
Axis Bank has implemented new interest rates for FDs under ₹3 crore, effective from August 26, 2026. Senior citizens will earn interest ranging from 3.50% to 7.25%, depending on the tenure. The highest interest rate of 7.25% is offered on FDs with tenures of 5 to 10 years. For general customers, the maximum interest rate is 6.50%. Before investing in an FD, consider factors such as the tenure, penalties for premature withdrawal, tax implications, and the bank's prevailing terms and conditions. Additionally, verify the latest interest rates on the respective bank's official website before investing.

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