With the Reserve Bank of India’s Monetary Policy Committee set to meet next week, several leading banks have already revised their fixed deposit (FD) rates downward. HDFC Bank, Yes Bank, and Punjab & Sind Bank have all announced changes impacting both regular and senior citizen investors.
HDFC Bank Ends Special FD Scheme
HDFC Bank discontinued its Special Edition FD scheme and introduced new rates effective April 1, 2025.
- Regular Citizens: FD rates now range between 3% and 7.25% for deposits under ₹3 crore. The highest rate of 7.25% is available on tenures of 10 to less than 21 months.
- Senior Citizens: Rates range from 3.5% to 7.75%, with the highest rate of 7.75% also offered on 10 to <21 months.
Yes Bank Cuts Rates by 25 Basis Points
Yes Bank has reduced its FD rates by 0.25% on select tenures, signaling a possible trend in the sector.
- General Citizens: New rates range between 3.25% and 7.75% (down from 8%).
- Senior Citizens: Rates now lie between 3.75% and 8.25% (down from 8.5%), with the highest offered on tenures of 12 to less than 24 months.
Punjab & Sind Bank Reduces Multiple Rates, Ends Tenures
Punjab & Sind Bank made significant changes to its FD offerings, effective April 1, 2025:
- Discontinued: Special tenures of 333 days (7.72%) and 555 days (7.45%) have been withdrawn.
- Revised Rates:
- 444 days – down from 7.30% to 7.10%
- 777 days – sharply down from 7.25% to 6.50%
- 999 days – reduced from 6.65% to 6.35%
- Special scheme deadline extended to June 30, 2025
Is This the Start of a Sector-Wide Downtrend?
The move by three major banks ahead of the RBI’s policy decision suggests that a downward cycle in FD rates could be on the horizon, prompting investors—especially retirees—to re-evaluate their investment strategies.
