Bad News For Depositors: HDFC Bank Cuts FD Rates Again In June 2025– Details Inside
New Delhi: HDFC Bank has once again slashed its fixed deposit (FD) interest rates. This marks the second cut this month. The bank starting June 25, 2025 has reduced rates by 25 basis points on select FD tenures for deposits below Rs 3 crore.
This latest move comes just two weeks after a similar rate cut on June 10, following the Reserve Bank of India's (RBI) decision to lower the repo rate from 6 per cent to 5.5 per cent. As India's largest private bank, HDFC's back-to-back cuts are likely to influence other lenders and impact FD investors.
FD Rates Cut for Key Tenure
HDFC Bank has revised the interest rate on fixed deposits with a tenure of 15 months to less than 18 months. Earlier, general customers earned 6.60 per cent, and senior citizens received 7.10 per cent. After the latest cut, the rates have dropped to 6.35 per cent for regular customers and 6.85 per cent for seniors. For deposits under Rs 3 crore, the bank now offers FD interest rates ranging from 2.75 per cent to 6.60 per cent for the general public and 3.25 per cent to 7.10 per cent for senior citizens, depending on the tenure.
Penalty on Early FD Withdrawal
If you plan to break your FD before it matures, keep in mind that HDFC Bank charges a penalty. As per the bank's rules, you'll earn 1 per cent less than the interest rate applicable for the actual duration your money stayed in the FD—not the rate you originally booked. So, early withdrawal could mean lower returns.
Savings Account Rates Also Reduced from June 24
Along with the FD rate cut, HDFC Bank has also reduced interest rates on savings accounts. Effective June 24, 2025, the savings rate has been cut by 25 basis points—from 2.75 per cent to 2.50 per cent per annum for all account balances. The interest on savings accounts is calculated daily and credited every quarter.
No Change in Recurring Deposit (RD) Rates
HDFC Bank's recurring deposit (RD) interest rates remain unchanged, ranging from 4.25 per cent to 6.60 per cent for general customers and 4.75 per cent to 7.10 per cent for senior citizens, depending on the deposit tenure. These rates have been in place since June 10, 2025.
Back-to-Back Rate Cuts
With two rate cuts in one month, HDFC Bank customers will now earn slightly less on new fixed deposits and savings accounts.
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