Fixed deposit interest rates: IndusInd Bank hikes rates, while Kotak Mahindra slashes rates, new tenure added

IndusInd Bank has announced significant increases in its fixed deposit (FD) interest rates across several tenures, aiming to attract depositors amid an increasingly competitive banking environment. Effective from 29 April 2025, the bank adjusted rates for short-term deposits, with the interest for tenures of 61 to 90 days rising from 4.75% to 5%.

The rates for deposits with tenures of 181 to 210 days, 211 to 269 days, 270 to 354 days, and 355 to 364 days have all been elevated to 7%, from previous rates of 5.85%, 6.1%, 6.35%, and 6.5%, respectively. The most notable hike is for deposits between 1 year 3 months and under 1 year 4 months, where rates reach 7.75% for general citizens and 8.25% for senior citizens. 

In contrast, Kotak Mahindra Bank has made more conservative adjustments to its FD rates. Effective from 30 April 2025, Kotak Mahindra has reduced the interest rate for a specific tenure of 390 days by 10 basis points, now offering 6.9% down from 7%. Additionally, a new tenure option of 91 days has been introduced, providing 5% interest for general citizens and 5.5% for senior citizens. This move marks the bank's third rate revision in April 2025, reflecting its strategic responsiveness to market conditions while aiming to maintain competitiveness. 

IndusInd Bank FD rates

 

Tenure	Rate of Interest for General Public (%)	Rate of Interest for Senior Citizens (%)
7 days to 14 days	3.50	4.00
15 days to 30 days	3.50	4.00
31 days to 45 days	3.75	4.25
46 days to 60 days	4.75	5.25
61 days to 90 days	4.75	5.25
91 days to 120 days	4.75	5.25
121 days to 180 days	5.00	5.50
181 days to 210 days	5.85	6.35
211 days to 269 days	6.10	6.60
270 days to 354 days	6.35	6.85
355 days to 364 days	6.50	7.00
1 Year to below 1 Year 3 months	7.75	8.25
1 Year 3 months to below 1 Year 4 months	7.75	8.25
1 Year 4 months to below 1 Year 6 months	7.75	8.25
1 Year 6 Months up to 2 Years	7.75	8.25
Above 2 Years to below 2 Years 6 Month	7.25	7.75
2 years 6 Months to below 2 years 7 months	7.25	7.75
2 year 7 months to 3 years 3 months	7.25	7.75
Above 3 years 3 months to below 61 months	7.25	7.75
61 months and above	7.00	7.50
Indus Tax Saver Scheme (5 years)	7.25	7.75

Kotak Mahindra Bank FD Rates

 

Tenure	Interest Rates for General Public (p.a.)	Interest Rates for Senior Citizens (p.a.)
7 - 14 Days	2.75%	3.25%
15 - 30 Days	3.00%	3.50%
31 - 45 Days	3.25%	3.75%
46 - 90 Days	3.50%	4.00%
91 - 120 Days	4.00%	4.50%
121 - 179 Days	4.25%	4.75%
180 Days	7.00%	7.50%
181 - 269 Days	6.00%	6.61%
270 Days	6.00%	6.61%
271 - 363 Days	6.00%	6.61%
364 Days	6.50%	7.12%
365 - 389 Days	7.10%	7.82%
390 Days (12 months 25 days)	7.40%	8.14%
391 Days - Less than 23 Months	7.40%	8.14%
23 Months	7.30%	8.08%
23 Months 1 Day - Less than 2 Years	7.30%	8.08%
2 Years - Less than 3 Years	7.15%	7.87%
3 Years - Less than 4 Years	7.00%	7.82%
4 Years - Less than 5 Years	7.00%	7.82%
5 Years - Up to 10 Years	6.20%	6.70%

These strategic adjustments highlight the varying approaches taken by private banks to attract depositors. IndusInd Bank, with its increased rates, positions itself as a strong contender in the market, offering competitive returns that could appeal to customers seeking higher yields on their short to medium-term deposits. This approach may enhance IndusInd's appeal compared to rivals that offer competitive rates but potentially less attractive terms in specific tenures. 

Kotak Mahindra Bank’s strategy, on the other hand, appears more measured, with its rates for general citizens ranging from 2.75% to 7.15% and for senior citizens from 3.25% to 7.65%. The introduction of a new short-term FD tenure is indicative of its focus on providing flexible deposit options while keeping a keen eye on market dynamics. 

Latest FD interest rates (April 2025)

After RBI slashed repo rate in the month of April, several leading Indian banks have revised their Fixed Deposit (FD) interest rates.

1. State Bank of India (SBI)

General Public: 3.50% to 6.90% p.a.

Senior Citizens: 4.00% to 7.40% p.a.

Special Scheme: "Amrit Vrishti" FD offers 7.05% for general customers and 7.55% for senior citizens for a tenure of 444 days. ​

2. HDFC Bank
General Public: 3.00% to 7.00% p.a.

Senior Citizens: 3.50% to 7.50% p.a.

3. ICICI Bank
General Public: 3.00% to 7.05% p.a.

Senior Citizens: 3.50% to 7.55% p.a.

4. Axis Bank
General Public: 3.00% to 7.05% p.a.

Senior Citizens: 3.50% to 7.55% p.a.

Note: Rates are applicable for deposits less than ₹3 crore. ​

5. Bank of India
General Public: 3.00% to 7.05% p.a.

Senior Citizens: 3.50% to 7.55% p.a.

6. IDBI Bank

General Public: Up to 7.35% p.a. under the "Utsav Callable FD" scheme.

Senior Citizens: Up to 7.85% p.a. under the same scheme.