FD rate cuts continue: ICICI, HDFC, Canara banks lower returns for deposits below Rs 3 crore
ICICI and HDFC Bank have reduced fixed deposit rates by up to 20 basis points, effective from 27 May and 23 May, respectively. Canara Bank's revised rates took effect from 21 May, offering a Tax-Saver FD scheme at 6.70%. These changes affect deposits under Rs 3 crore.
- May 27, 2025,
- Updated May 27, 2025 6:59 PM IST
ICICI Bank and HDFC Bank have announced reductions in their fixed deposit interest rates for amounts below Rs 3 crore, marking the second adjustment in two months. ICICI Bank's adjustments took effect from 27 May, while HDFC Bank's revisions were effective from 23 May. Both banks have lowered rates by up to 20 basis points on select tenures. For ICICI Bank, interest rates now range from 3% to 6.85% for general customers and 3.5% to 7.35% for senior citizens. HDFC Bank offers similar rates, with the highest being 6.85% for general customers and 7.35% for senior citizens on deposits ranging from 15 to 21 months.
Canara Bank also revised its fixed deposit rates effective 21 May 2025, applying to deposits under Rs 3 crore. The bank's updates include a Tax-Saver FD scheme offering 6.70% annual interest with a maximum investment limit of Rs 1.5 lakh, providing tax benefits under Section 80C of the Income Tax Act. Depositors can expect interest rates ranging from 4% to 7% for general customers and 4% to 7.50% for senior citizens on callable FDs.
ICICI Bank's revised interest rates now include a maximum of 6.85% for general customers and 7.35% for senior citizens on deposits of 18 months to 2 years. The rates for other tenures vary, with deposits from 7 to 45 days offering 3% for general citizens and 3.5% for senior citizens, and 5-year deposits offering 6.70% and 7.20%, respectively.
| 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 | 6.00% | 6.50% |
| 1 Year to | 6.50% | 7.00% |
| 15 Months to | 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's fixed deposit rates, now effective from 23 May, provide a maximum interest rate of 6.85% for general customers and 7.35% for senior citizens on select tenures. Deposits spanning 15 to 21 months receive the highest rates. Meanwhile, shorter tenures of 7 to 14 days see interest rates at 3% for general customers and 3.5% for senior citizens.
| Tenure | Interest Rate (per annum) | Senior Citizen Rate (per annum) |
|---|---|---|
| 7 to 14 days | 3.00% | 3.50% |
| 15 to 29 days | 3.00% | 3.50% |
| 30 to 45 days | 3.50% | 4.00% |
| 46 to 60 days | 4.50% | 5.00% |
| 61 to 89 days | 4.50% | 5.00% |
| 90 days to less than or equal to 6 months | 4.50% | 5.00% |
| 6 months 1 day to less than or equal to 9 months | 5.75% | 6.25% |
| 9 months 1 day to less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.60% | 7.10% |
| 15 months to less than 18 months | 7.10% | 7.60% |
| 18 months to less than 21 months | 7.25% | 7.75% |
| 21 months to 2 years | 7.00% | 7.50% |
| 2 years 1 day to less than 2 years 11 months | 7.00% | 7.50% |
| 2 years 11 months to 35 months | 7.00% | 7.50% |
| 2 years 11 months 1 day to less than or equal to 3 years | 7.00% | 7.50% |
| 3 years 1 day to less than 4 years 7 months | 7.00% | 7.50% |
| 4 years 7 months to 55 months | 7.00% | 7.50% |
| 4 years 7 months 1 day to less than or equal to 5 years | 7.00% | 7.50% |
| 5 years 1 day to 10 years | 7.00% | 7.50% |
Canara Bank has introduced special rates for senior and super senior citizens, with the latter receiving an additional 0.60% interest under the 'Canara-444 Scheme', totalling a 7.60% interest rate. Senior citizens receive an extra 0.50% on deposits over 180 days, except for NRE/NRO and CGA accounts.
| Tenure | Interest Rate (per annum) | Senior Citizen Rate (per annum) |
|---|---|---|
| 7 to 14 days | 3.00% | 3.50% |
| 15 to 29 days | 3.00% | 3.50% |
| 30 to 45 days | 3.50% | 4.00% |
| 46 to 60 days | 4.50% | 5.00% |
| 61 to 89 days | 4.50% | 5.00% |
| 90 days to less than or equal to 6 months | 4.50% | 5.00% |
| 6 months 1 day to less than or equal to 9 months | 5.75% | 6.25% |
| 9 months 1 day to less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.60% | 7.10% |
| 15 months to less than 18 months | 7.10% | 7.60% |
| 18 months to less than 21 months | 7.25% | 7.75% |
| 21 months to 2 years | 7.00% | 7.50% |
| 2 years 1 day to less than 2 years 11 months | 7.00% | 7.50% |
| 2 years 11 months to 35 months | 7.00% | 7.50% |
| 2 years 11 months 1 day to less than or equal to 3 years | 7.00% | 7.50% |
| 3 years 1 day to less than 4 years 7 months | 7.00% | 7.50% |
| 4 years 7 months to 55 months | 7.00% | 7.50% |
| 4 years 7 months 1 day to less than or equal to 5 years | 7.00% | 7.50% |
| 5 years 1 day to 10 years | 7.00% | 7.50% |
Source: Bankbazaar.com
The strategic repositioning by these banks comes as a response to broader market movements and monetary policy shifts. The adjustments in fixed deposit rates reflect the banks' efforts to align with current economic conditions and interest rate trends in the financial sector.
ICICI Bank and HDFC Bank have announced reductions in their fixed deposit interest rates for amounts below Rs 3 crore, marking the second adjustment in two months. ICICI Bank's adjustments took effect from 27 May, while HDFC Bank's revisions were effective from 23 May. Both banks have lowered rates by up to 20 basis points on select tenures. For ICICI Bank, interest rates now range from 3% to 6.85% for general customers and 3.5% to 7.35% for senior citizens. HDFC Bank offers similar rates, with the highest being 6.85% for general customers and 7.35% for senior citizens on deposits ranging from 15 to 21 months.
Canara Bank also revised its fixed deposit rates effective 21 May 2025, applying to deposits under Rs 3 crore. The bank's updates include a Tax-Saver FD scheme offering 6.70% annual interest with a maximum investment limit of Rs 1.5 lakh, providing tax benefits under Section 80C of the Income Tax Act. Depositors can expect interest rates ranging from 4% to 7% for general customers and 4% to 7.50% for senior citizens on callable FDs.
ICICI Bank's revised interest rates now include a maximum of 6.85% for general customers and 7.35% for senior citizens on deposits of 18 months to 2 years. The rates for other tenures vary, with deposits from 7 to 45 days offering 3% for general citizens and 3.5% for senior citizens, and 5-year deposits offering 6.70% and 7.20%, respectively.
| 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 | 6.00% | 6.50% |
| 1 Year to | 6.50% | 7.00% |
| 15 Months to | 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's fixed deposit rates, now effective from 23 May, provide a maximum interest rate of 6.85% for general customers and 7.35% for senior citizens on select tenures. Deposits spanning 15 to 21 months receive the highest rates. Meanwhile, shorter tenures of 7 to 14 days see interest rates at 3% for general customers and 3.5% for senior citizens.
| Tenure | Interest Rate (per annum) | Senior Citizen Rate (per annum) |
|---|---|---|
| 7 to 14 days | 3.00% | 3.50% |
| 15 to 29 days | 3.00% | 3.50% |
| 30 to 45 days | 3.50% | 4.00% |
| 46 to 60 days | 4.50% | 5.00% |
| 61 to 89 days | 4.50% | 5.00% |
| 90 days to less than or equal to 6 months | 4.50% | 5.00% |
| 6 months 1 day to less than or equal to 9 months | 5.75% | 6.25% |
| 9 months 1 day to less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.60% | 7.10% |
| 15 months to less than 18 months | 7.10% | 7.60% |
| 18 months to less than 21 months | 7.25% | 7.75% |
| 21 months to 2 years | 7.00% | 7.50% |
| 2 years 1 day to less than 2 years 11 months | 7.00% | 7.50% |
| 2 years 11 months to 35 months | 7.00% | 7.50% |
| 2 years 11 months 1 day to less than or equal to 3 years | 7.00% | 7.50% |
| 3 years 1 day to less than 4 years 7 months | 7.00% | 7.50% |
| 4 years 7 months to 55 months | 7.00% | 7.50% |
| 4 years 7 months 1 day to less than or equal to 5 years | 7.00% | 7.50% |
| 5 years 1 day to 10 years | 7.00% | 7.50% |
Canara Bank has introduced special rates for senior and super senior citizens, with the latter receiving an additional 0.60% interest under the 'Canara-444 Scheme', totalling a 7.60% interest rate. Senior citizens receive an extra 0.50% on deposits over 180 days, except for NRE/NRO and CGA accounts.
| Tenure | Interest Rate (per annum) | Senior Citizen Rate (per annum) |
|---|---|---|
| 7 to 14 days | 3.00% | 3.50% |
| 15 to 29 days | 3.00% | 3.50% |
| 30 to 45 days | 3.50% | 4.00% |
| 46 to 60 days | 4.50% | 5.00% |
| 61 to 89 days | 4.50% | 5.00% |
| 90 days to less than or equal to 6 months | 4.50% | 5.00% |
| 6 months 1 day to less than or equal to 9 months | 5.75% | 6.25% |
| 9 months 1 day to less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.60% | 7.10% |
| 15 months to less than 18 months | 7.10% | 7.60% |
| 18 months to less than 21 months | 7.25% | 7.75% |
| 21 months to 2 years | 7.00% | 7.50% |
| 2 years 1 day to less than 2 years 11 months | 7.00% | 7.50% |
| 2 years 11 months to 35 months | 7.00% | 7.50% |
| 2 years 11 months 1 day to less than or equal to 3 years | 7.00% | 7.50% |
| 3 years 1 day to less than 4 years 7 months | 7.00% | 7.50% |
| 4 years 7 months to 55 months | 7.00% | 7.50% |
| 4 years 7 months 1 day to less than or equal to 5 years | 7.00% | 7.50% |
| 5 years 1 day to 10 years | 7.00% | 7.50% |
Source: Bankbazaar.com
The strategic repositioning by these banks comes as a response to broader market movements and monetary policy shifts. The adjustments in fixed deposit rates reflect the banks' efforts to align with current economic conditions and interest rate trends in the financial sector.