Finance
SBI, HDFC Bank Cut Fixed Deposit Interest Rates After RBI Policy Rate Reduction
The RBI has lowered the key policy repo rate by 125 basis points since February 2025, reducing it down to 5.25 percent.
The chief executives and managing directors of public sector banks, as well as top officials from a few private sector institutions, interacted with Reserve Bank of India governor Sanjay Malhotra on Tuesday, 16th December 2025, in Mumbai.
In order to promote sustained and widespread economic growth, he emphasized during the conversation that banks must inform their clients of the recent RBI policy rate cut.
The governor stated that these rate reductions were intended to strengthen economic push, particularly in light of India’s strong 8% GDP growth in the first half of the current fiscal year.
With the Reserve Bank of India’s recent policy rate cut to consumers, the country’s largest public sector lender, State Bank of India (SBI), has announced a fresh round of rate correction on their lending and deposit products. After the SBI’s interest rate cut, India’s largest private bank, HDFC, too, followed suit by reducing their interest rate on fixed deposits (FDs).
The SBI FD rate chart effective from 15 December 2025 for general depositors is between 3.05% and 6.05% under various tenors. And the SBI’s latest FD rates for senior citizens are between 3.55% and 7.05% under various tenors.
Additionally, the bank has revised its unique “444-day” Amrit Vrishti scheme. In keeping with the general cut in deposit rates, the FD rate under this scheme has been lowered from 6.60% to 6.45%, too.
With effect from today, December 17, 2025, HDFC Bank has also updated its fixed deposit (FD) interest rates for accounts. under ₹3 crore, following the Reserve Bank of India’s recent lowering of the repo rate, the revision coincides with a wider drop. in interest rates across banks.
The bank now provides regular customers FD rates that range from 2.75% to 6.60% annually, depending on the tenure, under the updated schedule. Senior citizens continue to receive better returns, with FD rates as high as 7.10% annually on certain tenures.
For deposits under ₹3 crore, the new rates apply to domestic, NRE, and NRO fixed deposits with terms ranging from 7 days to 10 years. For frequent customers, mid-range tenures like 18–21 months offer about 6.60%, while Short-term deposits (7–29 days) currently fetch about 2.75%.
For fixed deposits under INR 3 crore, HDFC bank’s revised rate of interest:
HDFC Bank’s Revised Fixed Deposit Interest Rate Table For Deposits Below 3 Cr. Effective From December 17, 2025.
For fixed deposits above INR 3 crore, HDFC bank’s revised rate of interest:
For Fixed Deposit Above 3 Cr., HDFC Bank’s Revised Interest Rate Table, Effective From December 17, 2025.
Please note that, financial advisors recommend that investors assess both deposit tenures and the choice of bank with care before committing to fixed deposits, as the interest rate landscape remains fluid and additional revisions by banks cannot be ruled out in the months ahead.