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HDFC Bank revises fixed deposit rates after RBI rate cut
Effective 17 December 2025, HDFC Bank has revised its fixed deposit (FD) interest rates following the Reserve Bank of India’s decision to cut the benchmark repo rate to 5.25% from 5.50% earlier this month. The move reflects the broader easing in interest rates across the banking system.
What changed for FD holders
- Interest rates on several FD tenures have been adjusted downward in line with the RBI rate cut.
- The bank continues to offer slightly higher rates for senior citizens and for certain bulk or special-term deposits, though exact figures vary by tenure.
- Short-term and long-term tenures have both seen tweaks, so returns will differ depending on the deposit period chosen.
How this affects your savings
Lower FD rates mean fixed-income savers may earn less on new deposits compared with earlier this month. If you rely on FDs for steady income, this is a good time to review the mix of your investments and the timing of renewals.
Practical steps for depositors
- Check the updated rate list with the bank or on its official channels before opening or renewing an FD.
- Compare rates across banks and small-savings instruments to find the best post-cut returns.
- Consider laddering — splitting deposits across different maturities can balance liquidity and yield.
- Review tax impact and TDS rules on interest income to estimate net returns.
- Evaluate alternatives such as liquid funds, short-term debt funds, or government-backed schemes if you seek better after-tax returns or more flexibility.
Bottom line
The RBI rate cut to 5.25% has prompted HDFC Bank to lower FD rates from 17 December 2025. Savers should check the bank’s updated schedule, compare options, and adjust their strategies to protect returns and maintain suitable liquidity.