6 days Ago
HDFC Bank has slashed interest rates on savings accounts by 25 basis points. The move follows a broader trend of rate cuts across banks after the Reserve Bank of India (RBI) lowered its repo rate by 25 bps last week. Index Fund Corner Sponsored Scheme Name 1-Year Return Invest Now Fund Category Expense Ratio Axis Nifty 50 Index Fund +32.
80% Invest Now Equity: Large Cap 0.12% Axis Nifty 100 Index Fund +38.59% Invest Now Equity: Large Cap 0.
21% Axis Nifty Next 50 Index Fund +71.83% Invest Now Equity: Large Cap 0.25% Axis Nifty 500 Index Fund -- Invest Now Equity: Flexi Cap 0.
10% Axis Nifty Midcap 50 Index Fund +46.03% Invest Now Equity: Mid Cap 0.28% With this change, savings accounts with balances below ₹50 lakh will now earn 2.
75% per annum, down from 3%. Balances of ₹50 lakh and above will earn 3.25%, compared to 3.
50% earlier. The revised rates came into effect on April 12, 2025. This is the first cut in savings account interest for balances under ₹50 lakh since April 2020.
HDFC Bank had held the rate steady at 3% for nearly five years. The reduction comes shortly after the bank trimmed its fixed deposit (FD) rates. Indian banks often adjust deposit rates in line with RBI’s policy rate, as most deposit products are now linked to the repo rate.
SBI, Bank of India, HDFC Bank, and Yes Bank have all lowered FD interest rates in the past few days. SBI slashed rates by 10 bps for select tenures below ₹3 crore, effective April 15. Bank of India reduced rates by up to 25 bps and discontinued its special 400-day scheme.
Yes Bank cut rates by 25 bps on deposits maturing between 12 and 24 months. HDFC Bank lowered its FD rates by up to 40 bps for longer tenures like 2 years 11 months and 4 years 7 months. The RBI’s decision to cut the repo rate to 6% signals a shift to an accommodative stance.
Banks are passing on the benefit to customers faster, which is evident in the widespread FD and savings rate revisions..
