Mumbai, May 29, 2025: Following the Reserve Bank of India’s (RBI) repo rate reductions, HDFC Bank, the country’s largest private sector bank, has lowered its interest rates three times so far. Recently, on May 26, HDFC Bank announced another cut in its fixed deposit (FD) interest rates. Following suit, ICICI Bank, another leading private sector bank, has also announced a reduction in its FD interest rates. ICICI Bank has slashed rates by up to 20 basis points (bps) on select tenures, effective from May 26, 2025.
These revised rates apply only to fixed deposits below ₹3 crore. For general citizens, ICICI Bank offers FD interest rates ranging from 3% to 7.05%, while senior citizens receive rates between 3.5% and 7.55%. Although these ranges remain unchanged from previous offerings, specific tenures have seen reductions. For instance, deposits with tenures of less than 15 months now carry an interest rate of 6.5%, down by 20 bps from the previous 6.7%.
This move aligns with the broader industry trend following the RBI’s repo rate cut of 25 bps to 6% on April 9, 2025, which has prompted banks to adjust their deposit rates to reflect lower borrowing costs. These changes may disappoint depositors seeking higher returns, particularly as banks recalibrate their strategies in response to the RBI’s monetary policy.
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