PNB to IDFC First Bank: Check revised Fixed Deposit interest rates of 7 banks effective in May 2025

Fixed deposits (FDs) are still one of the most popular investment tools in India due to their risk-free nature and attractive returns. Investors who want to grow their money but have a low-risk tolerance invest in FDs to get assured returns.

FD returns differ from bank to bank depending on their guidelines. Financial institutions keep changing their rates based on economic conditions. Generally, FD rates fluctuate between 2.5% and 9% per annum for people who invest regularly with tenures ranging from 7 days to 10 years.

Many banks have recently revised their interest rates after the repo rate cut by the Reserve Bank of India (RBI). On April 9, RBI governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) has cut the repo rate by 25 basis points (bps) to 6% and shifted its stance to ‘accommodative’ from ‘neutral’.

When the RBI cuts the repo rate, loans get cheaper and more money is infused into the economy. As borrowing gets cheaper for banks, loans become more affordable for citizens. In this situation, banks sometimes reduce FD interest rates to align with the lower cost of borrowing and lending. Let’s take a look at the revised FD interest rates effective from May 1, 2025.

Punjab National Bank (PNB) has revised its fixed deposit (FD) interest rates for retail deposits less than ₹3 crore, decreasing interest rates by up to 25 basis points (bps) on some short- and medium-term deposits. The bank now offers interest rates ranging from 3.50% to 7.10% for terms ranging from 7 days to 10 years to general citizens. The highest 7.01% return is given for a 390-day term.

Kotak Mahindra Bank lowered its FD interest rates, which now stand between 2.75% and 7.15% for normal customers on deposits below ₹3 crore. For senior citizens, the rates range from 3.25% to 7.65%.

State Bank of India (SBI) cut its FD interest rates by 10 bps for deposits with a tenure between one and three years. For deposits between one year and two years, the bank now offers 6.7% for general citizens and 7.2% for senior citizens. Similarly, for deposits between two years and three years, interest rates stand at 6.9% for general customers and 7.4% for senior citizens.

IDFC FIRST Bank now offers interest rates between 3% and 7.25% on deposits less than ₹3 crore for general citizens with a tenure ranging from 7 days to 10 years. The bank offers interest rates ranging from 3.5% to 7.75% to senior citizens. The highest FD interest rates are available for a 400-500-day period.

AU Small Finance Bank is offering a range of 3.75% to 7.75% FD interest rates to customers with deposits below ₹3 crore for a tenure between 7 days and 10 years. For senior citizens, the banks offer FD interest rates between 4.25% and 8.05%.

IndusInd Bank has increased FD interest rates for long-term deposits but has cut them for short-term deposits. The bank now offers interest rates ranging from 3.5% to 7.75% annually for normal citizens and 4% to 8.25% for senior citizens. The highest interest rate of 7.75% and 8.25%, respectively, is for deposits with a tenure of over 15 to 16 months.

Bandhan Bank has also increased FD interest rates for deposits less than ₹3 crore. It now offers interest rates ranging between 3% and 7.75% for deposits with tenures ranging from 7 days to 10 years to regular citizens. For senior citizens, the rates now stand in a range between 3.75% and 8.25%. The highest interest rates are for a one-year term.