Fds In May 2025: Fixed Deposit Interest Rates Updated — See Which Banks Offer The Best Return In May

In nan aftermath of nan Reserve Bank of India's determination to trim nan repo complaint by 25 ground points to 6% successful April, starring banks person adjusted their fixed deposit (FD) liking rates. This move, effective from May 1, 2025, is successful consequence to nan RBI's displacement from a 'neutral' to an 'accommodative' stance, making borrowing cheaper and affecting deposit rates crossed nan banking sector. As banks align their liking offerings pinch nan caller costs of borrowing, customers will spot revised rates connected their fixed deposits.

Punjab National Bank has decreased its FD liking rates for unit deposits nether Rs 3 crore by up to 25 ground points. The revised rates scope from 3.50% to 7.10% for position betwixt 7 days and 10 years. The highest return of 7.01% is disposable for a 390-day term. 

Similarly, Kotak Mahindra Bank has lowered its rates to betwixt 2.75% and 7.15% for regular customers, pinch elder citizens benefiting from rates betwixt 3.25% and 7.65%. These adjustments item nan banks' efforts to negociate liquidity successful a changing economical environment.

The State Bank of India (SBI) has announced a simplification of 10 ground points successful its fixed deposit (FD) liking rates for deposits pinch a tenure ranging from 1 to 3 years. For deposits maturing betwixt 1 and 2 years, nan slope now offers an liking complaint of 6.7% for wide citizens and 7.2% for elder citizens. Similarly, for deposits maturing betwixt 2 and 3 years, nan liking rates person been group astatine 6.9% for wide customers and 7.4% for elder citizens.

IDFC FIRST Bank's caller liking rates scope from 3% to 7.25% for deposits beneath ₹3 crore, pinch elder citizens receiving 3.5% to 7.75%. The astir charismatic rates are offered for a 400-500 time tenure. 

Meanwhile, AU Small Finance Bank provides rates betwixt 3.75% and 7.75% for wide citizens, and 4.25% to 8.05% for seniors. IndusInd Bank has taken a different attack by expanding rates for semipermanent deposits while reducing them for short-term ones. Their caller rates span from 3.5% to 7.75% for regular customers and up to 8.25% for seniors, pinch nan highest rates applicable to deposits complete 15 to 16 months.

Bandhan Bank has besides revised its FD liking rates, offering betwixt 3% and 7.75% for deposits nether Rs 3 crore. Senior citizens are offered betwixt 3.75% and 8.25%, pinch nan highest rates applicable for a one-year term. These changes bespeak banks' strategies to stay competitory while adapting to nan little repo complaint environment. 

Fixed deposits stay a celebrated prime for risk-averse investors owed to their unchangeable returns and superior preservation, contempt these fluctuating rates. The adjustments crossed these banks underscore a broader inclination successful nan financial sector, wherever institutions are realigning their liking offerings successful consequence to macroeconomic policies. 

With banks for illustration HDFC Bank and SBI besides revising their rates successful consequence to nan RBI's decision, nan financial scenery continues to evolve. This ensures that customers person rates that bespeak nan existent economical conditions, providing some opportunities and challenges for investors seeking reliable returns connected their savings.

Published on: May 9, 2025 12:05 PM IST