Punjab And Sind, Axis, HDFC, And Two More Banks Revise FD Rates, Up To 8.75 Per Cent For Seniors

After the rate cut in February this year, experts anticipate one more rate cut this year. Whenever it happens, the rates for deposits will go down. Ahead of the monetary meeting committee (MPC) meeting of the Reserve Bank of India (RBI) in the coming week, five banks revised their FD rates during the week ending on April 5, 2025. These include Punjab and Sind Bank, Axis Bank, HDFC Bank, Yes Bank, and Jana Small Finance Bank.

After the tariff decision by US President Donald Trump, the markets have been volatile, and this trend is expected to continue in the foreseeable future. Amid this, the guaranteed return investment can be relied on for stability, if not higher returns. On the rate cut expectations in the new financial year, Laukik Bagwe, Fund Manager and Head of Fixed Income, ITI Mutual Fund, expects, “The RBI's proactive approach to monetary policy, combined with fiscal support measures such as tax cuts and increased capital expenditure, is expected to boost economic growth without exacerbating inflation. A front-loaded rate-cutting strategy, supplemented by liquidity and macro-prudential easing, should help narrow the negative output gap and sustain growth momentum. The upcoming monetary policy announcement is anticipated to continue this easing trend, supporting India's economic recovery and stability”.

Easing the rate means lowering the rates. It is done to make the loans cheaper and stimulate economic activity. In line with this activity, the banks reduce their deposit rates too to maintain the loan-to-deposit ratio (LDR).  

Seniors who prefer investing in fixed deposits (FDs) may like to book FDs before the rates are reduced further. Here are the details of FD interest rates for seniors.

Punjab And Sind Bank

The bank revised the rates on April 1, 2025. It offers the highest 7.75 per cent to senior citizens. The latest rates for seniors are:

• 6.80 per cent for one year

• 6.50 per cent for more than one year to 374 days

• 7.75 per cent for 375 days

• 6.50 per cent for 376 days to 443 days

• 7.60 per cent for 444 days

• 6.50 per cent for 445 days to less than 22 months

• 6.60 per cent for 22 months (PSB Green Earth)

• 6.50 per cent for more than 22 months to less than two years

• 6.80 per cent for two years to 776 days

• 7.00 per cent for 777 days

• 6.80 per cent for 778 days to 998 days

• 6.85 per cent for 999 days

• 6.80 per cent for 1000 days to less than three years

• 6.50 per cent for three years to less than 44 months

• 6.60 per cent for 44 months (PSB Green Earth)

• 6.50 per cent for more than 44 months to five years

• 7.00 per cent for five years

• 6.85 per cent for 66 months (PSB Green Earth)

• 6.75 per cent for more than five years to less than 66 months

• 6.85 per cent for 66 months (PSB Green Earth)

• 6.75 per cent for more than 66 months to 10 years

These rates are for callable FDs. The special FDs (444 Days, 555 Days, 777 Days, and 999 Days) are open for application until June 30, 2025.

Axis Bank

Axis Bank also offers seniors the highest 7.75 per cent interest. Here are the FD rates for seniors:

• 7.20 per cent for one year to less than 15 months

• 7.75 per cent for 15 months to less than two years

• 7.60 per cent for two years to less than five years

• 7.75 per cent for five years to 10 years

The bank revised the rates on April 4, 2025.

HDFC Bank

Seniors can avail of a maximum of 7.75 per cent interest from the bank on FDs. It revised the rates on April 1, 2025. For seniors, the interest rates are:

• 7.10 per cent for one year to less than 15 months

• 7.60 per cent for 15 months to less than 18 months

• 7.75 per cent for 18 months to less than 21 months

• 7.50 per cent for several tenures between 21 months and 10 years

Yes Bank

This private sector bank revised the rates on April 1, 2025, and offers a maximum of 8.25 per cent after revision. Here are the rates for seniors:

• 8.25 per cent for 12 months to less than 24 months

• 7.75 per cent for 24 months to less than 36 months

• 8.00 per cent for 36 months to 60 months

• 7.75 per cent for 60 months one day to 120 months

Jana Small Finance Bank

The bank offers a maximum of 8.75 per cent interest to seniors. Effective from April 5, 2025, the interest rates the bank offers seniors are:

• 8.00 per cent for 181 days to 365 days

• 8.60 per cent for more than one year to two years (730 Days)

• 8.75 per cent for more than two years to three years (1095 Days)

• 7.75 per cent for more than three years to less than five years

• 8.20 per cent for five years (1825 Days)

• 7.00 per cent for more than five years to 10 years

*All the banks’ rates listed above are for FDs up to Rs 3 crore that can be prematurely withdrawn.