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SBI, HDFC to Canara Bank: 4 banks cut FD rates in May; which is offering the highest returns?
7 min read | Updated on May 30, 2025, 15:27 IST
SUMMARY
After the RBI announced a 25 bps repo rate cut in April, several banks have reduced their deposit rates multiple times. In May, several banks cut their FD interest rates, including HDFC Bank, Canara Bank, ICICI Bank and SBI. Canara Bank offers the highest interest rates for FDs with tenures of 1 year (6.85%), 2 years (6.9%) and 3 years (7%) for the general public.
SBI offers the highest interest rate on FDs with a 5-year tenure (7.3%) for senior citizens.
On the back of the repo rate cut announced by the Reserve Bank of India in April, many banks have been announcing fixed deposit (FD) interest rate cuts. While almost every bank revised FD rates in April, many banks announced fresh rate cuts in May as well.
Let's take a look at the FD interest rates from the four banks that reduced rates in May.
State Bank of India
In April, the State Bank of India (SBI) cut interest rates by 10 bps for FDs below ₹3 crore with a tenure between one and three years. In May, the Bank again cut the interest rates by 20 bps, bringing them down to 6.5% for general citizens and 7% for senior citizens for FDs with a tenure of one to two years. For FDs between two and three years, the rates stand at 6.7% for the general public and 7.2% for senior citizens.
| Tenor | General Public (% p.a.) | Senior Citizen (% p.a.) |
|---|---|---|
| 7 days to 45 days | 3.30% | 3.80% |
| 46 days to 179 days | 5.30% | 5.80% |
| 180 days to 210 days | 6.05% | 6.55% |
| 211 days to less than 1 year | 6.30% | 6.80% |
| 1 year to less than 2 years | 6.50% | 7.00% |
| 2 years to less than 3 years | 6.70% | 7.20% |
| 3 years to less than 5 years | 6.55% | 7.05% |
| 5 years to up to 10 years | 6.30% | 7.30%* |
HDFC Bank
The HDFC Bank cut the interest rates by up to 20 bps for its FDs below ₹3 crore. The bank reduced rates for some of the tenures, including FDs for one year to less than 15 months (10 bps interest rate cut) and 18 months to less than 21 months (20 bps interest rate cut). The revised rates came into effect on May 23.
Current FD interest rates offered by HDFC Bank, effective from May 23:
| Tenor | Interest Rate (per annum) | Senior Citizen Rates (per annum) |
|---|---|---|
| 7 - 14 days | 3.00% | 3.50% |
| 15 - 29 days | 3.00% | 3.50% |
| 30 - 45 days | 3.50% | 4.00% |
| 46 - 60 days | 4.50% | 5.00% |
| 61 - 89 days | 4.50% | 5.00% |
| 90 days to 6 months | 4.50% | 5.00% |
| More than 6 months 1 day to 9 months | 5.75% | 6.25% |
| More than 9 months 1 day to less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.50% | 7.00% |
| 15 months to less than 18 months | 6.85% | 7.35% |
| 18 months to less than 21 months | 6.85% | 7.35% |
| 21 months to 2 years | 6.70% | 7.20% |
| More than 2 years 1 day to less than 2 years 11 months | 6.70% | 7.20% |
| 2 years 11 months to 35 months | 6.70% | 7.20% |
| More than 2 years 11 months 1 day to 3 years | 6.70% | 7.20% |
| More than 3 years 1 day to less than 4 years 7 months | 6.65% | 7.15% |
| 4 years 7 months to 55 months | 6.65% | 7.15% |
| More than 4 years 7 months 1 day to 5 years | 6.65% | 7.15% |
| More than 5 years 1 day to 10 years | 6.40% | 6.90% |
ICICI Bank
ICICI Bank also reduced the interest rates by up to 20 bps for select FDs below ₹3 crore. The bank now offers FD interest rates between 3% and 6.85% for the general public and between 3.5% to 7.35% for senior citizens. The revised rates came into effect on May 27, 2025.
Current FD interest rates offered by ICICI Bank, effective from May 27:
| Tenure | General Citizen | Senior Citizen |
|---|---|---|
| 7 to 45 Days | 3% | 3.5% |
| 46 to 90 Days | 4.25% | 4.75% |
| 91 to 184 Days | 4.75% | 5.25% |
| 185 to 270 Days | 5.75% | 6.25% |
| 271 Days to less than 1 Year | 6% | 6.5% |
| 1 Year to less than 15 Months | 6.5% | 7% |
| 15 Months to less than 18 Months | 6.6% | 7.1% |
| 18 Months to 2 Years | 6.85% | 7.35% |
| 2 Years 1 Day to 5 Years | 6.75% | 7.25% |
| 5 Years 1 Day to 10 Years | 6.7% | 7.2% |
| 5 Years (Tax Saver FD) | 6.75% | 7.25% |
Canara Bank
Canara Bank revised its interest rates on FDs below ₹3 crore by up to 25 bps on May 21, 2025. The interest rates now stand between 4% and 7% for the general public and between 4% and 7.5% for senior citizens. Before this, the rates stood between 4% to 7.25% for general citizens and between 4% to 7.75% for senior citizens.
Current FD interest rates offered by Canara Bank, effective from May 21:
| Tenure | General Public (%) | Senior Citizen (%) |
|---|---|---|
| 7 Days to 45 Days | 4.00 | 4.00 |
| 46 Days to 90 Days | 5.25 | 5.25 |
| 91 Days to 179 Days | 5.50 | 5.50 |
| 180 Days to 269 Days | 6.15 | 6.65 |
| 270 Days to less than 1 Year | 6.25 | 6.75 |
| 1 Year Only | 6.85 | 7.35 |
| 444 Days | 7.00 | 7.50 |
| Above 1 Year to less than 2 Years | 6.85 | 7.35 |
| 2 Years & above to less than 3 Years | 6.90 | 7.40 |
| 3 Years & above to less than 5 Years | 7.00 | 7.50 |
| 5 Years & above to 10 Years | 6.70 | 7.20 |
Among these four banks, Canara Bank offers the highest interest rates for FDs with tenures of 1 year (6.85%), 2 years (6.9%) and 3 years (7%).
Let’s compare the FD interest rates of four major banks in India for the most common tenures:
| Tenure | SBI (%) | HDFC Bank (%) | ICICI Bank (%) | Canara Bank (%) |
|---|---|---|---|---|
| 1 Year | 6.50 | 6.50 | 6.50 | 6.85 |
| 2 Years | 6.70 | 6.70 | 6.85 | 6.90 |
| 3 Years | 6.55 | 6.70* | 6.75 | 7.00 |
| 5 Years | 6.30 | 6.65 | 6.75 | 6.70 |
Further, ICICI Bank offers the highest interest rate for the FD with a 5-year tenure (6.75%). SBI offers the lowest interest rates across all the common tenures.
Comparison for senior citizens:
| Tenure | SBI (%) | HDFC Bank (%) | ICICI Bank (%) | Canara Bank (%) |
|---|---|---|---|---|
| 1 Year | 7.00 | 7.00 | 7.00 | 7.35 |
| 2 Years | 7.20 | 7.20 | 7.35 | 7.40 |
| 3 Years | 7.05 | 7.20* | 7.25 | 7.50 |
| 5 Years | 7.30 | 7.15 | 7.25 | 7.20 |
Even for senior citizens, Canara Bank offers the highest interest rates for FDs with tenures of 1 year (7.35%), 2 years (7.4%) and 3 years (7.5%). For senior citizens, SBI offers the highest interest rate on FDs with a 5-year tenure (7.3%).
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