SBI to ICICI Bank: 4 banks revise fixed deposit rates after RBI's repo rate cut in December

After the Reserve Bank of India announced a cut in the repo rate in December MPC for the fourth time in 2025, leading banks, including SBI, HDFC Bank, ICICI Bank and Axis Bank, have begun revising their fixed deposit (FD) interest rates.

The RBI Governor, during a meeting with public sector banks (PSUs), had asked lenders to promptly pass on the benefits of the repo rate cut to customers, emphasising faster transmission of monetary policy through lower lending and deposit rates to support economic growth.

The move is aimed at aligning deposit costs with the lower lending rates in the system, and it is expected to impact returns for both retail and senior citizen depositors, prompting investors to reassess their savings and investment strategies.

ICICI Bank new FD rates 2025

ICICI Bank’s latest fixed deposit (FD) interest rates for deposits below ₹3 crore, with a premature withdrawal facility, effective from December 18, offer different returns based on tenure and customer category.

For general citizens, rates start at 2.75% for 7–45 days, rise to 4% for 46–90 days, 4.5% for 91–184 days, 5.5% for 185 days to under one year, 6.25% for one year to under 18 months, 6.4% for 18 months to two years, and peak at 6.6% for tenures from 2 years 1 day to 10 years, including the 5-year Tax Saver FD.

Senior citizens earn higher returns, beginning at 3.25% for 7–45 days, 4.5% for 46–90 days, 5% for 91–184 days, 6% for 185 days to under one year, 6.75% for one year to under 18 months, 6.9% for 18 months to two years, with the highest rate of 7.2% available for 2 years 1 day to 5 years and the 5-year Tax Saver FD, while deposits from 5 years 1 day to 10 years earn 7.1%.

Axis Bank new FD rates 2025

For domestic fixed deposits less than ₹3 crore, effective 18 December 2025, the interest rates vary by maturity period for general and senior citizens.

For general citizens, rates begin at 3.00% for 7–29 days, increase to 3.25% for 30–45 days, 4.00% for 46–87 days, 4.50% for 88 days to under 6 months, 5.50% for 6 to under 9 months, 5.75% for 9 months to under 1 year, 6.25% for 1 year up to under 15 months, and rise to 6.60% for deposits from 15 months up to 10 years.

For senior citizens, rates are higher across tenures, starting at 3.50% for 7–29 days, 3.75% for 30–45 days, 4.50% for 46–87 days, 5.00% for 88 days to under 6 months, 6.00% for 6 to under 9 months, 6.25% for 9 months to under 1 year, 6.75% for 1 year to under 15 months, increasing to 7.10% for 15 months to under 5 years, and reaching the highest rate of 7.35% for deposits with a tenure of 5 to 10 years.

HDFC Bank new FD rates 2025

Under the revised schedule, the bank now offers FD rates ranging from 2.75 % to 6.60 % per annum for general customers, depending on the tenure. Senior citizens continue to earn higher returns, with rates up to 7.10 % per annum on selected tenures.

The updated rates are applicable across domestic, NRE and NRO fixed deposits for tenures from 7 days up to 10 years for deposits below ₹3 crore. Short-term deposits (7–29 days) now fetch around 2.75 %, while mid-range tenures such as 18–21 months offer around 6.60 % for regular customers.

SBI new FD rates 2025

The FD rate for general customers is as follows: for tenures of 7 to 45 days, the rate is 3.05%; 46 to 179 days, 4.90%; 180 to 210 days, 5.65%; 211 days to less than 1 year, 5.90%; 1 to 2 years, 6.25%; 2 to 3 years, 6.40%; 3 to 5 years, 6.30%; and 5 to 10 years, 6.05%.

Senior citizens will continue to earn higher returns across all tenors. Effective 15 December 2025, FD rates for senior citizens are: 3.55% for 7–45 days; 5.40% for 46–179 days; 6.15% for 180–210 days; 6.40% for 211 days to less than 1 year; 6.75% for 1–2 years; 6.90% for 2–3 years; 6.80% for 3–5 years; and 7.05% for 5–10 years.

RBI’s repo rate cuts in 2025

• In February 2025, the Reserve Bank of India’s Monetary Policy Committee cut the repo rate by 25 basis points (bps), reducing it from 6.50% to 6.25%.

• In April 2025, the RBI made another 25 bps cut, taking the rate down further to 6.00%.

• In June 2025, the RBI delivered a larger 50 bps cut, lowering the repo rate to 5.50%.

• In December 2025, the RBI cut the repo rate again by 25 bps, bringing it down to 5.25%.

An RBI rate cut refers to the Reserve Bank of India lowering the repo rate, making borrowing cheaper for banks and encouraging them to reduce lending and deposit rates to support economic growth.