6 days ago
Three Banks Revise FD Rates; Seniors Get Up To 7.25%
Three banks in India changed the interest they pay on fixed deposits.
HDFC Bank’s new rates started on August 19, 2026.
Federal Bank’s new rates started on August 17, 2026, and Axis Bank’s started on August 27, 2026.
Regular customers can receive up to 6.50% at HDFC Bank and Axis Bank, and up to 6.70% at Federal Bank.
Senior citizens can receive up to 7.10% at HDFC Bank, 7.25% at Axis Bank, and 7.20% at Federal Bank.
These highest rates apply only to particular deposit periods.
Other banks listed in the article offer rates as high as 7.50%.
People should compare the rate for their chosen period and consider taxes before opening an FD.
HDFC Bank revised rates on deposits below Rs 3 crore from August 19, 2026, offering up to 6.50% to regular customers and 7.10% to senior citizens.
Axis Bank’s revised rates took effect August 27, 2026, with maximum rates of 6.50% for non-seniors and 7.25% for senior citizens.
Federal Bank’s new resident term-deposit rates began August 17, 2026, reaching 6.70% for non-seniors and 7.20% for senior citizens.
Among the three banks, maximum rates are available only for specific deposit tenures rather than across all fixed deposits.
Investors are advised to compare tenure-specific rates and post-tax returns with other banks and debt-oriented options before investing.
- Who
- HDFC Bank, Axis Bank, Federal Bank, regular FD customers, and senior citizens.
- What
- The three banks revised their fixed-deposit interest rates.
- Where
- At the three banks in India.
- When
- The revised rates took effect on August 17, August 19, and August 27, 2026, depending on the bank.
- Why
- The rate changes affect potential FD returns, prompting investors to compare rates, taxes, and alternatives.
Book After Rate Revision
Compare Before Investing
Whether revised rates justify immediate investment
Book After Rate Revision
The revised rates may appeal to investors seeking predictable FD returns, particularly senior citizens eligible for the higher rates.
Compare Before Investing
The article cautions that a revision does not automatically make a bank the best choice; investors should compare rates for their selected tenure.
How to assess the return
Book After Rate Revision
The headline rates provide a straightforward way to compare potential interest earnings.
Compare Before Investing
Investors should focus on post-tax returns because FD interest is taxable and compare FDs with liquid funds, post-office savings schemes, bonds, and other debt investments.
Key facts
- HDFC Bank effective date
- August 19, 2026
- HDFC Bank maximum rate
- 6.50% for regular customers and 7.10% for senior citizens
- Federal Bank effective date
- August 17, 2026
- Federal Bank maximum rate
- 6.70% for non-senior citizens and 7.20% for senior citizens
- Axis Bank effective date
- August 27, 2026
- Axis Bank maximum rate
- 6.50% for non-senior citizens and 7.25% for senior citizens
- Highest comparison rate
- DCB Bank is listed with a maximum rate of 7.50%; IDFC FIRST Bank and YES Bank are listed at 7.25%
- Tax point
- The article says FD interest is taxable; banks deduct 10% TDS when annual interest exceeds Rs 50,000 for people under 60 or Rs 1,00,000 for senior citizens, subject to the stated conditions.
Sources
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