HDFC Bank has reduced interest rates on selected fixed deposits (FDs) of less than Rs 3 crore from April 1. The country’s largest private bank cut 35 basis points in deposit rate of 2 years 11 months (35 months) and 40 basis points in deposit rates of 4 years 7 months (55 months).
Now the bank is providing 7 percent interest rate for a period of 35 months and 55 months on deposits of up to 3 crore. However, senior citizens will get an additional interest of 0.50 percent on deposits.
The bank introduced these special deposit schemes in July 2024, providing interest rates of 7.35 per cent on deposits for 35 months and 7.40 per cent on deposits of 55 months. HDFC was paying the highest interest rate on these periods (35 months and 55 months) as compared to its equivalent banks. The bank needed to raise deposits for loan hike and hence a special initiative of fixed deposit.
However, the bank is paying the highest 7.25 percent interest on deposits from April 1 to 21 months. The bank is providing 7 percent interest on fixed deposits of more than 21 months. The interesting fact is that the six -member monetary policy committee of the Reserve Bank of India (RBI) had cut the interest rate of 25 basis points about two years ago after five years. But HDFC Bank has now announced a cut in interest rates of special deposit scheme.
First Published – April 2, 2025 | 10:22 PM IST