New Delhi: India’s largest private sector bank HDFC Bank has reduced the interest rate on savings accounts by 0.25 percent. Now, the lender will be providing 2.75 interest on savings accounts. Earlier, it gave 3 percent returns. The decision came after the Reserve Bank of India (RBI) reduced the repo rate by 0.25 percent. The savings account rate reduction would enable the bank to save about Rs 1,500 crore every year.
It may be noted that HDFC Bank never increased the interest rate on savings accounts in the last 14 years. In 2011, the bank used to provide 4 percent returns. Because of the low interest rate on savings accounts, people are using these accounts only for money transactions and opting for fixed deposits (FD).
With effect from 12th April 2025, rate of interest for Savings Bank deposits accounts has been revised as follows:
Savings Account Balance
Interest Rate p.a
Less than Rs 50 Lakh: 2.75%
Of and above Rs 50 Lakh: 3.25%
HDFC Bank pays accumulated interest is paid out either half-yearly or annually to your Savings account . The lender has stated that the minimum balances in Regular Savings account shoul dbe as follows:
Metro / Urban: Rs 10,000/- Average Monthly Balance
Semi-Urban: Rs 5,000/- Average Monthly Balance
Rural: Rs Average Quarterly Balance (AQB) of Rs 2,500/- or Fixed Deposit of Rs 10,000 for a minimum of 1 year, one-day duration.
The banks pay more interest on fixed deposits in comparison to savings accounts. The lenders try to keep the rate of savings accounts not too high. In 2020, during the COVID epidemic, SBI had reduced the interest rate on savings accounts to 2.75 percent and in 2022 it further slashed it to 2.7 percent.
HDFC Bank also reduced its fixed deposit rates by 0.35% to 0.40% from April 1, 2025. Many other banks are also reducing the FD rates. For example, Yes Bank slashed its FD rates. Bandhan Bank reduced the savings account interest rate from 6% to between 3% and 5%. Bajaj Finance has also reduced the long-term FD rate by 0.25%.
HDFC Bank has reduced its savings account interest rate to 2.75% (below Rs 50 lakh) and 3.25% (Rs 50 lakh and above), effective April 12, 2025, following an RBI repo rate cut. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
