Canara Bank, BOB, others FD rates post RBI policy: Check new terms

Lenders decision will impact investors who planned relying on stable returns from these accounts

The Reserve Bank of India (RBI) on Wednesday reduced the key repo rate by 25 basis points (bps) to 6 per cent, paving the way for a potential further decline in fixed deposit (FD) interest rates. It was the second consecutive cut by the central bank, in line with market expectations, and brings borrowing costs to their lowest point since November 2022.

 

FD investors who benefited from high returns in recent years are witnessing a decline, as banks begin to lower interest rates.

 

Canara Bank has reduced fixed deposit interest rates by up to 20 bps on select tenures for deposits below Rs 3 crore. According to the bank’s website, the revised rates are effective from April 10. Following the adjustment, the bank now offers interest rates ranging from 4 per cent to 7.25 per cent for the general public and between 4 per cent and 7.75 per cent for senior citizens on callable deposits.

 

Shivalik Small Finance Bank has also lowered interest rates on FDs. According to the bank’s website, the revised rates apply to FDs below Rs 3 crore and came into effect on April 9. The bank now offers interest rates ranging from 3.50 per cent to 8.30 per cent per annum on FDs for general citizens and from 4 per cent to 8.80 per cent per annum for senior citizens.

 

Kotak Mahindra Bank has updated its FD interest rates, cutting them by up to 15 basis points (bps) for select tenures. The new rates came into effect on April 9. After the revision, Kotak Mahindra Bank now offers interest rates between 2.75 per cent and 7.30 per cent for regular depositors, and between 3.25 per cent and 7.80 per cent for senior citizens.

 

Equitas Small Finance Bank has also reduced interest rates for FDs below Rs 3 crore, offering returns between 3.50 per cent and 8.05 per cent for general citizens on annualised yield.

 

Bank of Baroda has introduced a new fixed deposit option called the ‘bob Square Drive Deposit Scheme’. The updated FD interest rates, including the new scheme, came into effect on April 7 and apply to deposits of less than Rs 3 crore. Meanwhile, the bank has also withdrawn its special Utsav Deposit Scheme.

 

HDFC Bank offers an interest rate between 3 per cent and 7.25 per cent on fixed deposits for regular citizens for tenures ranging from 7 days to 10 years for amounts less than Rs 3 crore. The highest interest rate of 7.25 per cent is offered on tenure of 10 months to less than 21 months. The new rates are applicable from April 1, 2025.

 

Bandhan Bank revised its rates for bulk deposits over Rs 3 crore from April 3, 2025. The bank now offers 8 per cent for callable bulk deposits of 12 months and 12 months plus 1 day to under 13 months. Up to 8.3 per cent for non-callable bulk deposits of the same tenure

 

Yes Bank will now give the maximum interest rate of 7.75 per cent for non-senior residents and 8.25 per cent for senior citizens on their term deposits with a term bucket of 12 to 24 months. According to Yes Bank's official website, the latest and most recent FD rates go into effect on April 1, 2025.

 

The State Bank of India has discontinued its special deposit scheme, ‘Amrit Kalash,’ which offered a competitive interest rate of 7.10 per cent for a 400-day tenure.

 

Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard.