HDFC Bank cuts FD rates by 15 bps in select tenors; peak rate now 6.45%

HDFC Bank has lowered its fixed deposit rates by 15 bps for select tenors on deposits below Rs 3 crore, bringing its peak deposit rate down to 6.45% from December 17

HDFC Bank, the country’s largest private sector lender, has lowered its fixed deposit rates for deposits below Rs 3 crore, effective December 17. The bank has reduced its peak deposit rate by 15 basis points from 6.6 per cent to 6.45 per cent for the 18 months to less than 21 months tenor.

 

Now, HDFC Bank’s fixed deposit rates range from 2.75 per cent to 6.45 per cent.

 

Why has HDFC Bank cut deposit rates now? 

This move follows a 25-basis-point cut in the repo rate by the six-member Monetary Policy Committee (MPC) in December. The repo rate has been reduced by 125 basis points in the current easing cycle.

 

How does this compare with SBI’s recent FD rate changes? 

Earlier, State Bank of India (SBI), the country’s largest lender, lowered its peak deposit rate by 15 basis points. SBI’s Amrit Vrishti scheme, which offered 6.6 per cent for 444 days, has been revised downward to 6.45 per cent. Additionally, SBI has cut the interest rate on deposits in the tenor of two years to less than three years to 6.40 per cent from 6.45 per cent. The lender has not cut deposit rates in other tenors.