HDFC Bank FD rates: Private sector banks slash FD rates following rate cut

Mumbai: Private sector banks HDFC, ICICI, IDFC First and Kotak Mahindra have reduced interest rates on fixed deposits (FD) by 10-35 basis points (0.1-0.3 percentage point) for retail depositors, following the policy rate cut by the Reserve Bank of India on Friday.

Public sector Canara Bank and Indian Bank have also reduced rates, as lenders adjust to lower benchmark interest rates.

HDFC Bank reduced its FD rates by 25 basis points across tenures. Its one-year deposit rate is now 6.25%. It has also cut the savings bank interest rate on balances above ₹50 lakh by 50 basis points to 2.75%, bringing its rate on par for all savings deposits. The bank had in April reduced the savings rate to 2.75% for deposits below ₹50 lakh.

ICICI Bank also reduced its one-year deposit rate by 25 basis points to 6.25%. ICICI’s steepest cut came in the 18-month to two-year brackets, where it lowered the rate by 35 basis points to 6.50%. IDFC First and Kotak Mahindra Bank have also cut their one-year FD rates to 6.25%. While IDFC First has reduced rates by 15-25 basis points, Kotak’s cut ranged between 25 and 30 basis points.

Canara Bank offers a slightly higher 6.50% on one-year deposits, while Indian Bank offers 6.10%. Indian Bank has reduced its deposit rate above one year but less than two years by 50 basis points to 6.60%.