Following SBI, HDFC Bank has also cut fixed deposit interest rates. The new FD rates will be effective from December 17, 2025. FDs with maturities of 18 to 21 months have been most affected. Following the RBI’s repo rate cut, banks are now offering lower interest rates on savings, forcing investors to develop new strategies.
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FD Rates: Following SBI, the country’s largest private bank, HDFC Bank, has also reduced its fixed deposit interest rates. These new rates are effective from December 17, 2025. The bank has reduced interest rates on FDs of less than ₹3 crore for select periods, directly impacting millions of investors.
This move by HDFC Bank comes just days after the RBI cut the repo rate by 25 basis points. Previously, SBI also reduced its FD rates. It’s clear that banks are now getting cheaper money, and this is beginning to impact savings schemes.
For which FD periods has the interest rate been reduced?
HDFC Bank has reduced interest rates by 15 basis points on FDs with maturities of less than 18 months to 21 months. This reduction applies to both general and senior citizens. The rate for general citizens has dropped from 6.60 percent to 6.45 percent. For senior citizens, the rate has dropped from 7.10 percent to 6.60 percent. This clearly indicates that investors who have relied on FDs for a long time will now have to settle for lower returns.
HDFC Bank’s new FD interest rates
The following are HDFC Bank’s new rates for FDs of less than Rs 3 crore.
What do the TDS rules on FDs say?
If a customer’s interest income from FDs and RDs exceeds ₹50,000 annually, and ₹1 lakh for senior citizens, TDS will be deducted. To avoid TDS, it is essential to submit Form 15G or Form 15H on time. If interest is earned on FDs monthly or quarterly, TDS will be deducted directly from the linked savings or current account.
What are the warnings for investors?
The continued reduction in FD interest rates following the RBI repo rate cut indicates that FD returns may decline further in the coming months. Investors should choose their FD tenure wisely and also consider other, safer options. The banking system is now prioritizing affordable loans over high savings returns.
SBI has already reduced interest rates.
SBI offers its customers the option of fixed deposits with tenures ranging from 7 days to 10 years. The bank also offers special tenure FD schemes. Find out which FDs have received rate reductions and how much interest will be earned on FDs with different tenures.
Reduction on 2- to 3-year FDs
SBI has reduced the interest rate by 5 basis points (bps) on FDs with tenures of more than 2 years and less than 3 years. Previously, ordinary citizens would receive 6.45% interest, but with the new rate being implemented today, they will receive 6.40% interest. For senior citizens, the interest rate has been reduced from 6.95% to 6.90%.
SBI Fixed Deposit: Interest Rates by Tenure (%)
| Duration | General customers-
Rate effective from 15/07/2025 |
General customers-
Rate effective from 15/12/2025 |
Senior Citizen-
Rate effective from 15/07/2025 |
Senior Citizen-
Rate effective from 15/12/2025 |
|---|---|---|---|---|
| 7 days to 45 days | 3.05 | 3.05 | 3.55 | 3.55 |
| 46 days to 179 days | 4.90 | 4.90 | 5.40 | 5.40 |
| 180 days to 210 days | 5.65 | 5.65 | 6.15 | 6.15 |
| More than 211 days but less than 1 year | 5.90 | 5.90 | 6.40 | 6.40 |
| More than 1 year but less than 2 years | 6.25 | 6.25 | 6.75 | 6.75 |
| More than 2 years but less than 3 years | 6.45 | 6.40 | 6.95 | 6.90 |
| More than 3 years but less than 5 years | 6.30 | 6.30 | 6.80 | 6.80 |
| More than 5 years and up to 10 years | 6.05 | 6.05 | 7.05 | 7.05 |
Conclusion
HDFC Bank’s FD interest rate cut clearly indicates that fixed deposits are no longer as profitable as they once were. This trend is likely to continue following the RBI’s move. Investors should check the rates before booking a new FD and choose the right tenure for their needs.
