FD Interest Rate Cuts April 2025: HDFC, YES Bank Slash Rates, SBI Ends Amrit Kalash
Know the latest FD interest rate changes as of April 5, 2025. HDFC and YES Bank reduce rates; SBI discontinues its Amrit Kalash FD scheme. What should investors do now?
As of April 5, 2025, several Indian banks have reduced their fixed deposit (FD) interest rates, following the Reserve Bank of India's (RBI) recent monetary policy adjustments.
HDFC Bank has lowered its FD interest rates by up to 0.40% for deposits below ₹3 crore, effective from April 1, 2025. For instance, the interest rate for tenures of 1 year to 15 months has been adjusted to 6.60%.
YES Bank has also revised its FD rates, with new rates applicable from April 1, 2025. Specific details on the revised rates are available on the bank's official website.
State Bank of India (SBI) has discontinued its special FD scheme, 'Amrit Kalash', which offered higher interest rates for a specific tenure. This scheme concluded on March 31, 2025.
These adjustments are in response to the RBI's recent repo rate cut of 25 basis points to 6.25%, announced on February 7, 2025. This was the first reduction in nearly five years and is aimed at stimulating economic growth.
Financial experts anticipate further reductions in FD interest rates, especially with the RBI's Monetary Policy Committee meeting scheduled from April 7 to 9, 2025, where another rate cut is expected.
For FD investors, especially senior citizens relying on fixed-income returns, it may be prudent to invest in fixed deposits sooner rather than later to lock in current rates before any further reductions occur.
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