After the Reserve Bank of India reduced the repo rate, the State Bank of India (SBI) had cut interest rates on various fixed deposit schemes. Now India's largest private bank HDFC has announced a reduction in fixed deposit interest rates. This change applies to FDs below Rs. 3 crore at HDFC Bank.
Interest rates vary according to the time period of the fixed deposit. HDFC Bank has not changed interest rates on FDs for all tenures, but have changed for several tenures. The new interest rates will be effective from Wednesday, December 17.
HDFC Bank's FD interest rates
For FDs with a tenure between 7 and 14 days, the interest rate would be 2.75 percent. It would be the same for 15 to 29 days. Depositors would get a 3.25 percent interest on FDs with a tenure between 30 and 45 days, and 4.25 percent on tenures between 46 and 60 days, 61 to 89 days, and 90 days to 6 months.
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Depositors would get an interest of 5.5 percent on FDs for tenures between 6 months 1 day to 9 months, 5.75 percent on deposits for tenures between 9 months 1 day and less than one year, and 6.25 percent for tenures between one year and less than 15 months.
Tenures of more than 15 months and less than 18 months would fetch 6.35 percent interest on FDs at HDFC, and 6.45 percent for tenures between 18 months and less than 21 months, 21 months 1 day to 2 years, 2 years 1 day to 2 years 11 months, for deposits made for exactly 2 years and 11 months (35 months), and for deposits for tenures between 2 years 11 months 1 day and 3 years.
Depositors would get 6.4 percent interest on deposits made for tenures between 3 years 1 day and 4 years 7 months, for exactly 4 years 7 months, and for tenures between 4 years 7 months 1 day to 5 years. Any tenure between 5 years 1 day and 10 years would get 6.15 percent interest on fixed deposits at HDFC Bank.
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How much have the interest rates been cut?
For fixed deposits with tenures from 18 months to less than 21 months, interest rates have been reduced by 15 basis points. Interest rates have been cut for both general citizens and senior citizens. General citizens previously received interest at 6.60 percent for this tenure. Now they will receive interest at 6.45 percent.
The Reserve Bank announced a 25 basis point reduction in the repo rate in the first week of December following the Monetary Policy Committee meeting. After this, several top-tier banks in the country, including SBI and HDFC Bank, have made changes to interest rates on savings schemes like fixed deposits. The repo rate has changed multiple times since the beginning of this year. Various banks have also changed interest rates on fixed deposit schemes multiple times this year.
