Fixed Deposit (FD) rates in August 2025 continue to vary across top banks and financial institutions. This comes after the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points on June 6, 2025, bringing it down to 5.5%.
Following the rate cut, borrowing has become cheaper, prompting the financial institutions to lower their interest rates on fixed deposits.
With the next RBI Monetary Policy Committee (MPC) meeting scheduled from Aug. 4 to 6, all eyes will be on rate cut announcements. Banks are likely to further revise their FD rates following the MPC meeting, as reports indicate there is a scope for another rate cut.
The latest monthly economic review, released by the Finance Ministry, indicated more scope for a rate cut by the RBI’s MPC. “Core inflation remains subdued, and overall inflation is comfortably below the RBI’s 4% target, affording room for the easing cycle to be sustained,” said the monthly review report, according to PTI.
Leading lenders like State Bank of India (SBI), HDFC Bank, ICICI Bank and Axis Bank offer FD rates ranging from 6% onwards for one-year period. Rates vary across different tenures and also depend on the FD amount. Compared to regular interest rates offered, senior citizens are typically eligible for slightly higher rates.
India’s largest lender, SBI, is offering 6.25% interest on term deposits made for a one to two-year period for amounts under Rs 3 crore. For senior citizens, the rate stands at 6.75%. These rates, first implemented on June 15, were reviewed in mid-July but were kept unchanged, according to the SBI website.
Similarly, HDFC Bank is offering 6.25% interest on FDs for tenures of one year to less than 15 months for deposits under Rs 3 crore. From Aug. 1, Punjab National Bank is offering 6.4% returns on FD amounts of under Rs 3 crore for a period of one year. Axis Bank is providing 6.25% for FDs of 1 year to 1 year and 10 days, effective July 31.
Bank of Maharashtra continues to offer a 6.7% rate for 366-day deposits, unchanged since June 27.
Suryoday Small Finance Bank is offering one of the most attractive FD rates at 7.5% per annum on deposits for one year. Similarly, Sriram Finance is providing a rate of 7.11% p.a. for the same tenure.
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