FD Interest Rates Updated: What SBI, PNB & HDFC Are Paying Now

Fixed deposits have long been the favourite savings tool for Indian investors. They bring together the two things people value most, safety and assured returns. Whether someone wants predictable income or simply doesn’t want the stress of market-linked risk, FDs continue to be a reliable choice.

But with each bank offering different interest rates, it’s essential to compare before investing, especially now, after the latest RBI policy change.

RBI’s Decision and Its Impact on FD Rates

In June, the Reserve Bank of India cut the repo rate by 50 basis points, lowering it from 6% to 5.5%. A repo rate cut generally nudges banks to reduce their deposit rates, and that’s exactly what has happened.
Both public and private banks have now recalibrated their FD slabs, giving investors fresh figures to consider before making a move.

Public sector banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda quickly rolled out revised rates. On the private side, major players such as HDFC Bank, ICICI Bank, and Axis Bank also adjusted their interest offerings to align with the new monetary environment.

SBI’s New FD Rates: Short-Term Deposits Get a Trim

State Bank of India, the country’s largest lender, has reduced FD rates particularly in the short-term category:

• 180 to 210 days: Dropped from 5.80% to 5.65%
• 211 days to less than 1 year: Reduced from 6.05% to 5.90%

Senior citizens have also seen a mild dip in short-term rates, though SBI continues to offer comparatively attractive rates on long-term fixed deposits. For retirees, these options still remain dependable for generating secure monthly or quarterly income.

Revised PNB FD Rates: Attractive Slabs for Senior Citizens

Punjab National Bank implemented its new rates from June 18. The range is broad and caters to every type of depositor:

• General public: 3.25% to 6.70% for tenures spanning 7 days to 10 years
• Senior citizens: 3.75% to 7.20%
• Super senior citizens: 4.05% to 7.50%

PNB’s structured slabs highlight its focus on rewarding older investors with extra returns, ensuring they continue to enjoy higher earnings on long-term and medium-term deposits.

HDFC Bank’s Updated FD Rates: Varied Returns Across Tenures

HDFC Bank, one of the largest private sector lenders, has also revised its FD chart:

• General customers: 2.75% to 6.60%
• Senior citizens: 3.25% to 7.10%

The returns differ sharply depending on the tenure, making it important for investors to choose a time period that aligns with their financial goals. Longer tenures usually fetch better rates, especially for senior citizens who receive additional interest.

What Should Investors Do Now?

With banks adjusting their rates, it’s a good time for investors to:

• Compare FD rates across multiple banks before locking in funds
• Choose tenures wisely, balancing liquidity with higher returns
• Take advantage of senior citizen benefits if eligible
• Re-evaluate existing FDs to check if reinvesting at revised rates makes sense

Even with rate cuts, FDs remain a stable and dependable savings avenue, ideal for risk-averse investors and those looking for predictable income.


Disclaimer: This article has been adapted from information available across various financial sources. Before investing in any bank’s fixed deposits, always consult a financial expert for personalised guidance.