Fixed Deposit Update: HDFC, Yes Bank & Bandhan Bank Adjust Rates – Should You Invest Now?

As FY 2025-26 begins, HDFC Bank, Yes Bank, and Bandhan Bank have revised their fixed deposit (FD) interest rates. These changes precede the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting next week, with anticipation of a further repo rate reduction following February 2025’s 0.25% cut.

*     Effective April 1, 2025, rates on deposits below ₹3 crore have been reduced. 35-month FDs see a 35 basis point decrease, while 55-month FDs drop by 40 basis points. Both now offer 7% interest, with senior citizens receiving an additional 0.5%.

*     Select tenures have experienced a 0.25% rate reduction. FDs of 12-24 months now offer 7.75% interest.

*     Effective April 3, 2025, bulk deposit rates have been revised. Callable bulk deposits above ₹3 crore for 12 months, and 12 months and 1 day to less than 13 months offer 8% interest. Non-callable bulk deposits above ₹3 crore offer up to 8.3% interest.

Several other banks, including AU Small Finance Bank, IndusInd Bank, DCB Bank, Karnataka Bank, and Ujjivan SFB, also revised their FD rates last month.