SBI, HDFC, ICICI, Axis, Canara Bank revise FD rates post RBI rate cut
Following the RBI’s 25 basis point repo rate cut, major banks including SBI, HDFC, ICICI and Axis Bank have reduced fixed deposit rates for both general citizens and senior citizens.
- Dec 19, 2025,
- Updated Dec 19, 2025 5:06 PM IST
India’s largest banks have revised their fixed deposit (FD) interest rates downward in response to the Reserve Bank of India’s (RBI) recent 25 basis point repo rate cut from 5.50% to 5.25%. State Bank of India (SBI) implemented changes effective December 15, lowering FD rates for general citizens by 5 basis points to 6.40% for deposits of 2 years to less than 3 years, while senior citizens now receive 6.90% for the same tenure. HDFC Bank’s adjusted rates, effective December 17, saw FDs with 18 to less than 21 months’ tenure drop by 15 basis points, reducing general customer rates to 6.45% and senior citizen rates to 6.95%.
ICICI Bank revised its FD rates from December 18, now offering interest between 2.75% and 6.60% to general customers, depending on tenure, while senior citizens receive between 3.25% and 7.20%. Axis Bank, also effective December 18, introduced rates ranging from 3.00% to 6.60% for general citizens and 3.50% to 7.35% for senior citizens. Canara Bank revised its FD rates from December 8, offering its highest rate of 6.15% for a 555-day deposit, down from the previous top rate of 6.50% on the 444-day FD. These reductions reflect the immediate impact of the RBI’s interest rate cut, with both general and senior customers experiencing lower potential returns on new deposits, though senior citizens consistently receive higher rates than the general population.
The rate adjustments by SBI, HDFC, ICICI, Axis, and Canara Bank closely follow the RBI’s monetary policy shift and are mirrored across the sector as other leading banks also revise their retail deposit products. Competitors such as ICICI Bank, Axis Bank and Canara Bank have implemented similar revisions, maintaining competitive positioning within the market. While these actions directly reduce interest income for depositors, they are aligned with the broader trend of policy transmission and are expected to influence savings behaviour and investment choices among retail customers.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points to 5.25% on December 5 this year from the earlier 5.5%. A repo rate cut trims the cost of borrowing for commercial banks, leading to lower interest rates on loans, including home loans.
India’s largest banks have revised their fixed deposit (FD) interest rates downward in response to the Reserve Bank of India’s (RBI) recent 25 basis point repo rate cut from 5.50% to 5.25%. State Bank of India (SBI) implemented changes effective December 15, lowering FD rates for general citizens by 5 basis points to 6.40% for deposits of 2 years to less than 3 years, while senior citizens now receive 6.90% for the same tenure. HDFC Bank’s adjusted rates, effective December 17, saw FDs with 18 to less than 21 months’ tenure drop by 15 basis points, reducing general customer rates to 6.45% and senior citizen rates to 6.95%.
ICICI Bank revised its FD rates from December 18, now offering interest between 2.75% and 6.60% to general customers, depending on tenure, while senior citizens receive between 3.25% and 7.20%. Axis Bank, also effective December 18, introduced rates ranging from 3.00% to 6.60% for general citizens and 3.50% to 7.35% for senior citizens. Canara Bank revised its FD rates from December 8, offering its highest rate of 6.15% for a 555-day deposit, down from the previous top rate of 6.50% on the 444-day FD. These reductions reflect the immediate impact of the RBI’s interest rate cut, with both general and senior customers experiencing lower potential returns on new deposits, though senior citizens consistently receive higher rates than the general population.
The rate adjustments by SBI, HDFC, ICICI, Axis, and Canara Bank closely follow the RBI’s monetary policy shift and are mirrored across the sector as other leading banks also revise their retail deposit products. Competitors such as ICICI Bank, Axis Bank and Canara Bank have implemented similar revisions, maintaining competitive positioning within the market. While these actions directly reduce interest income for depositors, they are aligned with the broader trend of policy transmission and are expected to influence savings behaviour and investment choices among retail customers.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points to 5.25% on December 5 this year from the earlier 5.5%. A repo rate cut trims the cost of borrowing for commercial banks, leading to lower interest rates on loans, including home loans.