HDFC Bank cuts FD interest rates: 2nd revision in June
What's the story
HDFC Bank has reduced the interest rates on select fixed deposit (FD) tenures by 25 basis points (bps), effective from June 25. The revised rates are applicable for deposits below ₹3 crore. This is the second such revision in June after a similar cut on June 10. The bank has also reduced savings account interest rates by 25 bps to 2.50%, effective from June 24.
New rates
FD rates now range from 2.75% to 6.60%
The latest revision brings HDFC Bank's FD rates to a range of 2.75% to 6.60% for regular customers, depending on the tenure. Senior citizens get slightly higher returns, ranging from 3.25% to 7.10%. For instance, FDs with a tenure of 18 months to less than 21 months now offer an interest rate of up to 6.60% for general customers and up to 7.10% for senior citizens.
Rate breakdown
Updated FD rates for deposits below ₹3 crore
The updated interest rates on FDs for deposits below ₹3 crore are as follows: For tenures of 7-14 days, the interest rate is 2.75% for regular customers and 3.25% for senior citizens. For tenures of 30-45 days, the rate remains unchanged at 4.25% (regular) and 4.75% (senior citizens). Beyond that, rates gradually increase with tenure length, with the highest rates applying to tenures of 18 months to less than 21 months: 6.60% (regular) and 7.10% (senior citizens).
Other changes
Savings account and recurring deposit (RD) interest rates
The revised rates follow the Reserve Bank of India (RBI)'s decision to cut the repo rate by 50 bps earlier this month. HDFC Bank now offers a flat rate of 2.50% per annum on all balances in its savings accounts, down from the previous flat rate of 2.75%. For recurring deposits (RDs), interest rates range between 4.25% and 6.60% for general customers and between 4.75% and 7.10% for senior citizens since June 10.