HDFC Bank Reduces FD and Savings Account Interest Rates for Second Time in June 2025 – HDFC Bank, one of India’s largest private lenders, announced its second round of rate cuts on fixed deposits and savings accounts this June. The first set of reductions took effect on June 10, 2025, and the next on June 24, reflecting the RBI’s decision to trim the repo rate by 50 basis points—from 6% down to 5.5%. Below, you’ll find the latest FD rate chart as of June 25, 2025, along with an easy-to-follow look at what these changes mean for savers and why they were made.
Background on the Rate Cuts
In early June, the Reserve Bank of India lowered its repo rate to make loans cheaper and spur economic activity. To match the RBI’s reduced cost of funds, banks needed to bring down the interest they pay on deposits as well. HDFC’s first adjustment on June 10 covered all FD tenures for amounts up to ₹3 crore. The bank then followed up on June 24 by cutting rates on savings accounts—and even tweaked a few FD tenures again on June 25—to keep pace with the RBI’s move.
Details of the Rate Reductions
First Rate Cut (June 10, 2025)
HDFC Bank reduced FD interest rates by up to 25 basis points for deposits under Rs 3 crore, effective June 10, 2025. This adjustment applied across all tenures, reflecting the RBI’s repo rate cut and its impact on the banking sector’s cost of funds.
Second Rate Cut (June 24 and 25, 2025)
On June 24, 2025, HDFC Bank lowered the interest rate on all savings account balances by 25 basis points, from 2.75% to 2.50%. This rate is calculated daily and paid quarterly, affecting all account holders uniformly. On June 25, 2025, the bank further reduced FD rates for specific tenures, notably the 15-to-18-month tenure, by 25 basis points. For this tenure, general customers now earn 6.35% (down from 6.60%), while senior citizens earn 6.85% (down from 7.10%).
New FD Rate Chart
HDFC Bank has updated its FD interest rates, effective from June 25, 2025, for deposits less than Rs 3 crore, and from June 18, 2025, for deposits between Rs 3 crore and less than Rs 5 crore. Below are the detailed rate charts.
FD Rates for Deposits Less Than Rs 3 Crore (Effective June 25, 2025)
| Tenor Bucket | Interest Rate (per annum) | Senior Citizen Rates (per annum) |
|---|---|---|
| 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 <= 6 months | 4.25% | 4.75% |
| 6 months 1 day <= 9 months | 5.50% | 6.00% |
| 9 months 1 day to < 1 year | 5.75% | 6.25% |
| 1 year to < 15 months | 6.25% | 6.75% |
| 15 months to < 18 months | 6.35% | 6.85% |
| 18 months to < 21 months | 6.60% | 7.10% |
| 21 months – 2 years | 6.45% | 6.95% |
| 2 Years 1 day to < 2 Year 11 Months | 6.45% | 6.95% |
| 2 Years 11 Months – 35 Months | 6.45% | 6.95% |
| 2 Years 11 Months 1 day <= 3 Year | 6.45% | 6.95% |
| 3 Years 1 day to < 4 Years 7 Months | 6.40% | 6.90% |
| 4 Year 7 Months – 55 months | 6.40% | 6.90% |
| 4 Year 7 Months 1 day <= 5 Years | 6.40% | 6.90% |
| 5 Years 1 day – 10 Years | 6.15% | 6.65% |
FD Rates for Deposits Between Rs 3 Crore and Less Than Rs 5 Crore (Effective June 18, 2025)
| Tenor Bucket | Interest Rate (per annum) | Senior Citizen Rates (per annum) |
|---|---|---|
| 7 – 14 days | 4.00% | 4.50% |
| 15 – 29 days | 4.00% | 4.50% |
| 30 – 45 days | 4.75% | 5.25% |
| 46 – 60 days | 5.00% | 5.50% |
| 61 – 89 days | 5.25% | 5.75% |
| 90 days <= 6 months | 5.75% | 6.25% |
| 6 months 1 day <= 9 months | 5.90% | 6.40% |
| 9 months 1 day to < 1 Year | 6.00% | 6.50% |
| 1 Year to < 15 months | 6.15% | 6.65% |
| 15 months to < 18 months | 6.15% | 6.65% |
| 18 months to < 21 months | 6.15% | 6.65% |
| 21 months to 2 years | 6.15% | 6.65% |
| 2 year 1 day to 3 years | 6.25% | 6.75% |
| 3 year 1 day to 5 years | 6.35% | 6.85% |
| 5 year 1 day to 10 years | 6.15% | 6.65% |
Notes:
- Senior citizen rates do not apply to Non-Resident Indians (NRIs).
- The minimum tenor for NRE deposits is 1 year.
- Premature withdrawals incur a 1% penalty, with the interest rate being 1% less than the applicable rate on the date of booking for the tenure completed.
Impact on Depositors
The rate reductions will lower returns for depositors. Savings account holders will earn less interest, as the new 2.50% rate applies to all balances. For FD holders, existing deposits will retain their original rates unless withdrawn early, in which case a 1% penalty applies. This may prompt depositors to reassess their investment strategies, potentially exploring alternatives like mutual funds or other fixed-income instruments to maintain returns.
Reasons for the Rate Cuts
The RBI’s repo rate cut to 5.5% in June 2025, as reported by Times of India, aimed to boost lending by reducing borrowing costs. HDFC Bank, like other major banks such as ICICI and Canara, adjusted its deposit rates to align with this policy shift. The lower repo rate reduces the cost of funds for banks, allowing them to offer cheaper loans but necessitating lower deposit rates to maintain profitability. The bank’s actions reflect a broader trend in the banking sector, with no significant controversy reported, as these changes are consistent with monetary policy objectives.
For more information visit : https://www.hdfcbank.com/personal/save/deposits/fixed-deposit-interest-rate
Also visit : https://postofficefd.com/category/fixed-deposit/