HDFC Bank, India's largest private sector lender, has announced a revision in its fixed deposit interest rates, following a key policy rate cut by the Reserve Bank of India (RBI). The new rates will come into effect from 17 December 2025.
RBI's Rate Cut Triggers Bank Action
The bank's decision comes shortly after the RBI reduced its benchmark repo rate by 25 basis points to 5.25%. The central bank described the Indian economy as being in a "rare goldilocks period," marked by strong growth and moderate inflation. This monetary policy easing has prompted several banks, including the State Bank of India, to adjust their deposit rates downwards.
HDFC Bank's Revised FD Rates: Key Changes
HDFC Bank has specifically reduced interest rates on fixed deposits with a tenure of more than 18 months but less than 21 months. For general investors, the rate for this bracket has been lowered to 6.45% from 6.60%. Senior citizen investors will now earn 6.95% instead of the previous 7% for the same period.
The revised interest rate structure for deposits up to ₹3 crore is as follows (effective 17 December 2025):
- 7 days to 6 months: Rates range from 2.75% to 3.25% for general public and 3.25% to 3.75% for senior citizens.
- 6 months 1 day to 9 months: 5.50% (General) / 6.00% (Senior Citizen)
- 9 months 1 day to less than 1 year: 5.75% (General) / 6.25% (Senior Citizen)
- 1 year to less than 15 months: 6.25% (General) / 6.75% (Senior Citizen)
- 15 months to less than 18 months: 6.35% (General) / 6.85% (Senior Citizen)
- 18 months to less than 21 months: 6.45% (General) / 6.95% (Senior Citizen)
- 21 months to less than 3 years: 6.45% (General) / 6.95% (Senior Citizen)
- 3 years 1 day to less than 5 years: 6.40% (General) / 6.90% (Senior Citizen)
- 5 years 1 day to 10 years: 6.15% (General) / 6.65% (Senior Citizen)
Important Considerations for Investors
The bank has clarified that the special rates for senior citizens are not applicable to NRI investors. Furthermore, the minimum tenure for NRE deposits remains one year. For general investors opting for tenures between 3 and 5 years, the applicable interest rate will vary between 4% and 6.40%, depending on the exact deposit period. Senior citizens can expect rates between 4.50% and 6.75% for the same duration.
This adjustment in FD rates reflects the broader transmission of the RBI's accommodative policy stance into the banking system. Investors, particularly those reliant on fixed income from deposits, may need to review their financial planning in light of these revised returns.
