FD returns fall: 8 banks cut deposit rates in March
What's the story
Several banks, including HDFC Bank and Yes Bank, have slashed their fixed deposit (FD) rates in March 2026. The move comes as a response to changing monetary policy expectations and liquidity conditions. Other banks that have also lowered rates for certain tenures include Bank of India, Indian Bank, Bandhan Bank, IDFC First Bank, Equitas Small Finance Bank, and ESAF SFB.
Rate change
HDFC Bank
HDFC Bank revised its FD rates on March 6, offering 2.75% to 6.50% for regular customers and 3.25% to 7% for senior citizens. The bank increased rates on deposits with a tenure of three years and one day to four years and seven months by 10 basis points to 6.5%. However, some tenures were cut by up to 18 months to less than 21 months.
Rate adjustment
Yes Bank
Yes Bank updated its FD rates for balances below ₹3 crore with effect from March 5. The bank now offers 3.25% to 7% for general customers and 3.75% to 7.75% for senior citizens. The highest rates are applicable on tenures between three years and less than five years (7% for general and 7.75% for elderly citizens).
Rate revisions
Bandhan Bank and Indian Bank
Bandhan Bank has revised its FD interest rates for deposits below ₹3 crore, effective March 6. The bank now offers general citizens FD interest rates between 2.95% and 7.25%, and senior citizens FD interest rates between 3.70% and 7.75%. Meanwhile, Indian Bank offers FD interest rates of up to 7.55% for senior citizens and up to 7.05% for the general public (300-day special product).
Rate changes
Suryoday SFB and Equitas SFB
Suryoday Small Finance Bank (SSFB) revised its FD rates for deposits below ₹3 crore on March 6. The highest rate on five-year deposits under the new rates is 7.90% for the general public and 8.10% for senior people. Equitas Small Finance Bank also revised its FD rates on March 2, offering up to 8.00% for senior citizens and a range of 3.50% to 7.40% for general rates on deposits under ₹3 crore.