HDFC Bank Cuts Fixed Deposit Interest Rates After Repo Rate Reduction, Impacting Millions of Customers

HDFC Bank, India’s largest private sector bank, has announced a reduction in fixed deposit (FD) interest rates, delivering a setback to millions of depositors. The move comes in the wake of the Reserve Bank of India’s (RBI) recent decision to lower the repo rate, following which several banks have begun revising their deposit rates downward. After State Bank of India (SBI) reduced its FD rates on December 15, HDFC Bank has now followed suit.

The revised interest rates, lowered by up to 0.25 percent, came into effect from December 17, 2025. These new rates apply to fixed deposits of up to ₹3 crore and will affect both existing and new customers who are planning to invest in FDs with the bank.

Why HDFC Bank Reduced FD Interest Rates

Banks usually adjust their deposit and lending rates in response to changes in the RBI’s monetary policy. When the repo rate is cut, borrowing becomes cheaper for banks, reducing their cost of funds. As a result, banks often lower interest rates on fixed deposits to protect their margins. Following the RBI’s latest repo rate cut, most major banks have started trimming FD returns, and HDFC Bank’s decision aligns with this broader trend in the banking sector.

For customers who rely on fixed deposits for stable and predictable income—especially retirees and conservative investors—this reduction may affect their overall returns.

Revised FD Interest Rates for Deposits Up to ₹3 Crore

Under the new structure, HDFC Bank is offering the following interest rates across various tenures:

For very short-term deposits ranging from 7 days to 14 days, general customers will earn 2.75 percent interest, while senior citizens will receive 3.25 percent. The same rates apply to deposits with a tenure of 15 days to 29 days.

For deposits between 30 days and 45 days, the interest rate is 3.25 percent for the general public and 3.75 percent for senior citizens. Fixed deposits with a tenure of 46 days to 60 days, as well as 61 days to 89 days, now offer 4.25 percent for regular customers and 4.75 percent for senior citizens.

Deposits with a maturity of 90 days up to six months also carry an interest rate of 4.25 percent for the general category and 4.75 percent for senior citizens. For tenures between six months and one day up to nine months, the bank is offering 5.50 percent to general customers and 6.00 percent to senior citizens.

For deposits ranging from nine months and one day to less than one year, interest rates stand at 5.75 percent for the general public and 6.25 percent for senior citizens.

Medium- and Long-Term FD Rates

Customers opting for fixed deposits with a tenure of one year to less than 15 months will earn 6.25 percent interest, while senior citizens will get 6.75 percent. For deposits between 15 months and less than 18 months, the rates are 6.35 percent for general customers and 6.85 percent for senior citizens.

Fixed deposits with tenures from 18 months and one day to less than 21 months, as well as those between 21 months and two years, offer 6.45 percent interest for regular customers and 6.95 percent for senior citizens. The same rates apply to deposits ranging from two years and one day up to just under three years.

For longer tenures between three years and one day to less than four years and seven months, HDFC Bank is offering 6.40 percent to the general public and 6.90 percent to senior citizens. This rate also applies to deposits up to less than five years.

For long-term fixed deposits with maturities between five years and ten years, the interest rate has been set at 6.15 percent for general customers, while senior citizens will receive 6.65 percent.

What This Means for Depositors

The reduction in FD interest rates means lower returns for depositors, particularly those who depend on fixed deposits as a primary source of income. Senior citizens, although still receiving slightly higher rates, will also feel the impact of the cut.

Financial experts suggest that investors should carefully compare FD tenures and consider laddering deposits to manage interest rate fluctuations. Some may also explore alternative low-risk investment options, depending on their financial goals and risk appetite.

As the interest rate environment continues to evolve, customers are advised to stay updated on bank notifications and review their investment strategies accordingly. HDFC Bank’s latest revision reflects the broader shift in the banking sector following changes in RBI’s monetary policy, signaling a period of relatively lower returns on fixed deposits.