The start of financial year 2025-26 brings reduced fixed deposit returns for investors as HDFC and Yes Bank together with other institutions cut their FD interest rates. Banks have started adjusting their rates because of the Reserve Bank of India’s February repo rate cut while they wait for the upcoming Monetary Policy Committee (MPC) meeting from April 7 to 9 since markets expect additional policy rate relaxation.
HDFC Bank modified its fixed deposit interest rates for amounts under ₹3 crore beginning April 1, 2025. The Special Edition FD scheme from the bank no longer exists after it provided maximum returns of 7.40%. The bank reduced interest rates for its 35-month and 55-month tenures by 35 and 40 basis points respectively until they reached 7%.
The maximum interest rate for short-term deposits stands at 7.25% for time periods ranging from 10 months to 21 months. Senior citizens receive an extra 0.50% interest rate at every time period.
Yes Bank implemented a 25 basis point reduction in its FD interest rates for particular deposit periods. Regular customers receive FD interest between 3.25% and 7.75% while senior citizens receive FD interest between 3.75% and 8.25%. The maximum interest rate of 7.75% applies to deposits that range from 12 to 24 months.
