Your FD returns may drop as ICICI, HDFC reduce rates
What's the story
Leading private sector lenders ICICI Bank and HDFC Bank have reduced their fixed deposit (FD) interest rates by up to 20 basis points (bps) on certain tenures. The revised rates are applicable for deposits of less than ₹3 crore. The new rates came into effect from May 27 for ICICI Bank and May 23 for HDFC Bank.
Rate changes
ICICI Bank's revised FD rates
ICICI Bank has reduced its FD rates on a number of key tenures. The interest rate for deposits between one year and less than 15 months has been cut by 20 bps to 6.5% from 6.7%. Similarly, the rate for deposits between 15 months and less than 18 months has been revised down to 6.6% from an earlier rate of 6.8%.
Extended reductions
Other reductions in ICICI Bank's FD rates
For deposits maturing between 18 months and two years, the interest rate has been lowered to 6.85% from an earlier 7.05%. The rate for tenures between two years and one day to five years has been cut by 15 bps to 6.75% from its previous value of 6.9%. For tenures between five years and one day up to a decade, the rate now stands at a revised figure of 6.7%, down from an earlier value of 6.8%.
Rate adjustments
HDFC Bank's revised FD rates
HDFC Bank has also revised its FD interest rates, following a 50 bps cut in April. The bank has reduced the rate for deposits between one year and less than 15 months by 10 bps to 6.5% from an earlier value of 6.6%. For tenures between 18 months and less than 21 months, the rate has been lowered by 20 bps to a new value of 6.85% from its previous value of 7.05%.
Senior citizen benefits
HDFC Bank's FD rates for senior citizens
The revised FD interest rates for general citizens at HDFC Bank now range from 3% to 6.85%, while senior citizens can avail between 3.5% and 7.35%. The highest rate of 7.35% is applicable on tenures between 15 months and less than 21 months for senior citizens.