FD rate revisions: Shivalik Small Finance Bank, IDFC FIRST Bank tweak rates for savings account, fixed deposits

Shivalik Small Finance Bank and IDFC FIRST Bank have revised their savings account and fixed deposit (FD) interest rates, effective from May 1, 2025. Shivalik SFB now offers savings account interest rates ranging from 2.50% to 8.20%, depending on the balance slab. The bank calculates the savings account interest daily based on the daily closing balance, following Reserve Bank of India guidelines. 

IDFC FIRST Bank has adjusted its savings account rates to range between 3% and 7.25% based on balance slabs. The interest is also calculated daily but paid monthly. These adjustments follow recent trends in the banking industry, where fluctuations in interest rates are common as banks strive to remain competitive and attract customers. 

In the fixed deposit segment, Shivalik SFB's new rates, applicable for deposits below Rs 3 crore, range from 3.50% to 8.20% for general customers and from 4% to 8.70% for senior citizens. Notably, the highest rates are applicable for terms between 12 months 1 day and 24 months.

Shivalik SFB's new FD rates

IDFC FIRST Bank's FD rates for amounts below Rs 3 crore range from 3% to 7.75% for general citizens and from 3.5% to 8.25% for senior citizens. The highest rates are observed for deposit terms between 400 and 500 days. These competitive rates reflect the ongoing efforts of both banks to optimize their deposit portfolios amidst evolving market conditions. 

IDFC FIRST Bank's FD rates

Shivalik SFB's interest rate of 8.20% for certain deposits is particularly noteworthy as it challenges prevailing market rates. IDFC FIRST Bank, with a maximum savings interest rate of 7.25%, remains competitive as it seeks to enhance its market presence and customer base.

Banks' FD rates

YES Bank, Kotak Mahindra Bank, and Axis Bank have reduced their fixed deposit (FD) interest rates this April, following the Reserve Bank of India’s decision to cut the repo rate by 25 basis points—from 6.25% to 6.00%—at its April 9 monetary policy meeting.

YES Bank lowered its highest FD rate for retail investors from 7.75% to 7.50% on deposits below ₹3 crore with tenures ranging from 7 days to 10 years. The revised rates took effect on April 21, impacting returns for conservative investors relying on FDs for steady income.

Kotak Mahindra Bank also implemented its second rate cut this month, bringing its highest FD rate down from 7.30% to 7.15% for select tenures, effective April 23. In a further revision on April 30, the bank slashed the interest rate on its 390-day deposit by 10 basis points—from 7% to 6.9%—and introduced a new 91-day tenure offering 5% for general citizens and 5.5% for senior citizens. This marks Kotak's third FD rate adjustment in April, signaling strategic calibration to stay competitive amid changing market dynamics.

Axis Bank’s latest FD rates now range between 3% and 7.05% for general citizens, with senior citizens eligible for up to 7.55%, depending on tenure. These reductions align with broader shifts across the banking sector as institutions adjust to the softer interest rate environment.

In contrast, IndusInd Bank has raised its FD rates across several tenures to attract depositors amid growing competition. Effective April 29, the bank hiked interest for short-term deposits between 61 and 90 days from 4.75% to 5%.

It also increased rates for multiple other tenures—181 to 210 days, 211 to 269 days, 270 to 354 days, and 355 to 364 days—all of which now offer 7%, up from 5.85%, 6.1%, 6.35%, and 6.5%, respectively. The most significant hike was seen for deposits between 1 year 3 months and under 1 year 4 months, now yielding 7.75% for general citizens and 8.25% for senior citizens.