HDFC Bank has dealt a second blow to its customers this June. For the second time this month, the bank has reduced interest rates on its Fixed Deposit (FD) schemes. If you were planning to open a new FD, you’ll now get lower interest than before.
This change follows the Reserve Bank of India’s (RBI) decision to cut the repo rate. HDFC Bank responded with a 25 basis point (0.25%) reduction in interest for key deposit durations. The new FD rates took effect on June 25, 2025.
But that’s not all—savings account interest rates have also been reduced, adding to customer frustration.
What’s Changed for HDFC Customers?
- FD rates have been slashed twice in June 2025.
- Savings account interest dropped from 2.75% to 2.50%, effective June 24, 2025.
- The most impacted FD durations are 15 to 18 months.
- Senior citizens also face lower interest, though still slightly higher than regular customers.
HDFC Bank FD Interest Rates (From June 25, 2025)
Here’s a quick snapshot of the updated FD interest rates based on tenure:
| Tenure | General Customers | Senior Citizens |
|---|---|---|
| 7 – 14 days | 2.75% | 3.25% |
| 15 – 29 days | 2.75% | 3.25% |
| 30 – 45 days | 3.25% | 3.75% |
| 46 – 60 days | 4.25% | 4.75% |
| 61 – 89 days | 4.25% | 4.75% |
| 90 days to <6 months | 4.25% | 4.75% |
| 6 months 1 day to <9 mo. | 5.50% | 6.00% |
| 9 months 1 day to <1 yr | 5.75% | 6.25% |
| 1 yr to <15 months | 6.25% | 6.75% |
| 15 to <18 months | 6.35% | 6.85% |
| 18 to <21 months | 6.60% | 7.10% |
| 21 months to 2 years | 6.45% | 6.95% |
| 3 years and above | 6.15% – 6.45% | 6.65% – 6.95% |
What Does This Mean for You?
- Lower income for savers: Especially retirees who rely on FD interest.
- Need to re-think strategy: Fixed returns aren’t what they used to be.
- Savings interest down too: The savings account now earns just 2.50%, among the lowest in years.
HDFC Bank Savings Account Interest (as of June 24, 2025)
- New rate: 2.50% (down from 2.75%)
- Based on: Daily closing balance
- Payout frequency: Quarterly
HDFC Bank FD Features at a Glance
| Feature | Details |
|---|---|
| Minimum deposit | Usually ₹5,000 (may vary by branch) |
| Maximum limit | No upper cap |
| Tenure options | 7 days to 10 years |
| Interest payout | Monthly, quarterly, half-yearly, yearly |
| Early withdrawal penalty | 1% lower interest than applicable rate |
| Tax benefit | Available on 5-year tax-saving FDs under Sec 80C |
Why the Rate Cut?
HDFC Bank isn’t acting alone. After the RBI reduced its repo rate by 50 basis points, multiple banks followed suit. The cost of borrowing is now cheaper, and that usually translates into lower returns for depositors.
For customers, it means fewer rewards for staying conservative with their savings.
Premature Withdrawal Penalty on HDFC FDs
If you withdraw your FD before maturity:
- You’ll get 1% less interest than what was applicable when you booked it.
- The penalty applies to both partial and full withdrawals.
- This rule has been in effect since July 22, 2023.
HDFC RD (Recurring Deposit) Interest Rates (Effective June 10, 2025)
| Tenure | General Rate | Senior Citizen Rate |
|---|---|---|
| 6 months | 4.25% | 4.75% |
| 12 months | 6.25% | 6.75% |
| 18 months | 6.60% | 7.10% |
| 24–60 mo. | 6.15%–6.45% | 6.65%–6.95% |
Should You Still Consider FDs?
Here’s what to keep in mind:
Good If:
- You want guaranteed returns with no risk.
- You’re a senior citizen looking for slightly higher interest.
- You’re parking funds temporarily with no market exposure.
Not Ideal If:
- You need inflation-beating returns.
- You plan to break the FD early (you’ll lose interest).
- You want flexibility and liquidity like mutual funds offer.
Quick Math Example
Let’s say you invest ₹1,00,000 for 18 months in an FD:
- General customer at 6.60%: earns ~₹9,900
- Senior citizen at 7.10%: earns ~₹10,650
(Simple interest estimate; actual returns may vary based on compounding)
FAQs
Q: What’s the highest interest rate currently offered by HDFC Bank on FDs?
Up to 6.60% for general customers and 7.10% for seniors on select durations.
Q: Is early withdrawal allowed?
Yes, but you’ll receive 1% less interest than the applicable rate.
Q: Can I get tax benefits with an HDFC FD?
Yes, 5-year tax-saving FDs qualify under Section 80C.
Q: Is there a better option than FD right now?
You may explore debt mutual funds, government bonds, or hybrid funds, depending on your risk tolerance.
Final Thoughts
This rate cut might feel disappointing—especially for retirees or low-risk savers. But you’re not helpless. Keep an eye on the latest rates, compare other instruments, and don’t hesitate to talk to your bank about better options.
FDs still offer safety and predictability—but if income is your goal, it’s time to think a little beyond the traditional route.
Disclaimer: This article is based on official updates and news sources regarding HDFC Bank’s rate revision as of June 2025. Always check the bank’s website or your nearest branch for the most current interest rates before investing.