ICICI, HDFC Bank again cut fixed deposit rates, trim rates by up to 20 bps

Private-sector lenders, ICICI and HDFC Bank, will offer senior citizens up to 7.35% returns for their deposits

 

ICICI Bank and HDFC Bank have reduced interest rates for fixed deposits below Rs 3 crore and of select tenures by up to 20 basis points (bps), announcing such a decision for the second time in last 2 months. The new rates are effective from May 27 and 23, respectively.

   

ICICI Bank: Rate cut across select tenures

According to ICICI Bank, annual interest rates now range from 3 per cent to 6.85 per cent for general customers and 3.5 to 7.35 per cent for senior citizens.

 

The maximum rate offered by the bank is 6.85 per cent for general customers and 7.35 for senior citizens on deposits of 18 months to 2 years.  ALSO READ | ICICI Bank ends PayLater on UPI: Here's what's changing for users now

 

Below is a detailed chart of fixed deposit rates and tenures offered by ICICI Bank

   

Tenure	With Premature Withdrawal
	General Citizen	Senior Citizen
7 to 45 Days	3.00%	3.50%
46 to 90 Days	4.25%	4.75%
91 to 184 Days	4.75%	5.25%
185 to 270 Days	5.75%	6.25%
271 Days to < 1 Year	6.00%	6.50%
1 Year to < 15 Months	6.50%	7.00%
15 Months to < 18 Months	6.60%	7.10%
18 Months to 2 Years	6.85%	7.35%
2 Years 1 Day to 5 Years	6.75%	7.25%
5 Years 1 Day to 10 Years	6.70%	7.20%
5Y (Tax Saver FD)	6.75%	7.25%

 

HDFC Bank: Similar revisions on key tenures

 

HDFC Bank has revised its fixed deposit rates by up to 20 bps on select buckets from May 23. It offers rates from 3 per cent to 6.85 per cent per annum for general customers and 3.5 per cent to 7.35 per cent for senior citizens.

 

The maximum rate offered by the bank is 6.85 per cent for general customers and 7.35 for senior citizens on deposits of 15 months to 21 months

 

Below is a chart of fixed deposit rates and tenures offered by HDFC Bank

   

Tenor Bucket	< 3 Crore
	Interest Rate (per annum)	**Senior Citizen Rates (per annum)
7 - 14 days	3.00%	3.50%
15 - 29 days	3.00%	3.50%
30 - 45 days	3.50%	4.00%
46 - 60 days	4.50%	5.00%
61 - 89 days	4.50%	5.00%
90 days < = 6 months	4.50%	5.00%
6 months 1 days < = 9 months	5.75%	6.25%
9 months 1 day to < 1 year	6.00%	6.50%
1 year to < 15 months	6.50%	7.00%
15 months to < 18 months	6.85%	7.35%
18 months to < 21 months	6.85%	7.35%
21 months - 2 years	6.70%	7.20%
2 Years 1 day to < 2 Year 11 Months	6.70%	7.20%
2 Years 11 Months - 35 Months	6.70%	7.20%
2 Years 11 Months 1 day < = 3 Year	6.70%	7.20%
3 Years 1 day to < 4 Years 7 Months	6.65%	7.15%
4 Year 7 Months - 55 months	6.65%	7.15%
4 Year 7 Months 1 day < = 5 Years	6.65%	7.15%
5 Years 1 day - 10 Years	6.40%	6.90%

 

What does this mean for fixed deposit investors

 

While the interest rate cuts may seem modest, they could impact returns for short- to mid-term depositors, particularly those rolling over their fixed deposits. However, senior citizens still enjoy preferential rates of up to 7.35 per cent helping them cushion the blow of falling rates.

 

Investors are advised to:

 

Compare rates across banks before locking in fixed deposits.

 

Consider staggering their deposits across tenures to manage interest rate risk.

 

Explore other savings instruments if they seek higher returns with similar safety.

 

Both banks have published their revised fixed deposit rate sheets on their official websites, providing full details for various tenures and customer categories.