IDBI and ICICI Banks revise fixed deposit, savings account rates amid low-interest environment
IDBI Bank adjusts FD rates, extends Utsav scheme; ICICI Bank cuts savings, FD rates, reflecting market trends.
- Apr 17, 2025,
- Updated Apr 17, 2025 5:56 PM IST
IDBI Bank has announced revisions to its fixed deposit (FD) interest rates while extending the deadline for its Utsav Deposit scheme beyond April 30, 2025. This move comes as the bank discontinues two special FD tenures of 300 and 375 days under the scheme. The revised rates now offer 7.25% for general customers, 7.75% for senior citizens, and 7.90% for super senior citizens on a 444-day tenure. A 555-day tenure will yield 7.30%, 7.80%, and 7.95% respectively for the same categories of depositors. Furthermore, the 700-day tenure rates have been reduced to 7% for general customers, 7.50% for senior citizens, and 7.65% for super senior citizens.
Simultaneously, ICICI Bank has announced a reduction in its savings account interest rates by 25 basis points, alongside a reduction in FD rates by up to 50 basis points on select tenures. Effective from April 17, 2025, ICICI Bank now offers FD interest rates ranging from 3% to 7.05% for general citizens and from 3.5% to 7.55% for senior citizens. The bank's savings account interest rate for balances below Rs 50 lakh is now set at 2.75%, down from 3%, while for balances above Rs 50 lakh, it has been adjusted to 3.25%.
ICICI's FD rate revisions are significant, with a notable reduction of 45 basis points for deposits maturing in 15 to 18 months, now at 6.8%. For tenures between 18 months and 2 years, the rate has been reduced by 20 basis points to 7.05%. The bank has also adjusted the rates for longer tenures: deposits of 2 years 1 day to 5 years now earn 6.9%, down from 7%, and those of 5 years 1 day to 10 years have been reduced by 10 basis points to 6.8%. Additionally, the 5-year Tax Saver FD rate has been revised to 6.9%.
These revisions by IDBI and ICICI reflect a broader trend in the banking industry towards a low-interest rate environment. This shift is largely in response to recent adjustments in the Reserve Bank of India's (RBI) monetary policy rates. Other major banks, such as SBI and HDFC Bank, have also recently announced similar reductions in their deposit rates. This collective move suggests a strategic adaptation to the current economic conditions, characterised by a softer interest rate regime.
The interest rate adjustments are part of a wider realignment of banking strategies in response to prevailing monetary conditions. Analysts note that such measures are likely to impact savers seeking higher returns on their deposits. However, they may also provide opportunities for borrowers to benefit from lower interest rates on loans. As banks continue to adjust their offerings, customers are advised to stay informed about the latest rate changes and understand how they might affect their financial planning.
IDBI Bank has announced revisions to its fixed deposit (FD) interest rates while extending the deadline for its Utsav Deposit scheme beyond April 30, 2025. This move comes as the bank discontinues two special FD tenures of 300 and 375 days under the scheme. The revised rates now offer 7.25% for general customers, 7.75% for senior citizens, and 7.90% for super senior citizens on a 444-day tenure. A 555-day tenure will yield 7.30%, 7.80%, and 7.95% respectively for the same categories of depositors. Furthermore, the 700-day tenure rates have been reduced to 7% for general customers, 7.50% for senior citizens, and 7.65% for super senior citizens.
Simultaneously, ICICI Bank has announced a reduction in its savings account interest rates by 25 basis points, alongside a reduction in FD rates by up to 50 basis points on select tenures. Effective from April 17, 2025, ICICI Bank now offers FD interest rates ranging from 3% to 7.05% for general citizens and from 3.5% to 7.55% for senior citizens. The bank's savings account interest rate for balances below Rs 50 lakh is now set at 2.75%, down from 3%, while for balances above Rs 50 lakh, it has been adjusted to 3.25%.
ICICI's FD rate revisions are significant, with a notable reduction of 45 basis points for deposits maturing in 15 to 18 months, now at 6.8%. For tenures between 18 months and 2 years, the rate has been reduced by 20 basis points to 7.05%. The bank has also adjusted the rates for longer tenures: deposits of 2 years 1 day to 5 years now earn 6.9%, down from 7%, and those of 5 years 1 day to 10 years have been reduced by 10 basis points to 6.8%. Additionally, the 5-year Tax Saver FD rate has been revised to 6.9%.
These revisions by IDBI and ICICI reflect a broader trend in the banking industry towards a low-interest rate environment. This shift is largely in response to recent adjustments in the Reserve Bank of India's (RBI) monetary policy rates. Other major banks, such as SBI and HDFC Bank, have also recently announced similar reductions in their deposit rates. This collective move suggests a strategic adaptation to the current economic conditions, characterised by a softer interest rate regime.
The interest rate adjustments are part of a wider realignment of banking strategies in response to prevailing monetary conditions. Analysts note that such measures are likely to impact savers seeking higher returns on their deposits. However, they may also provide opportunities for borrowers to benefit from lower interest rates on loans. As banks continue to adjust their offerings, customers are advised to stay informed about the latest rate changes and understand how they might affect their financial planning.