FD rates: Bank of India has announced the withdrawal of its special 400-day fixed deposit scheme, which offered an interest rate of up to 7.30%. This decision is part of a broader adjustment in the bank’s interest rates across various fixed deposit tenures, effective from 15 April 2025. The revised rates now include 4.25% for deposits maturing between 91 and 179 days and 5.75% for those maturing in 180 days to less than a year. Deposits with a one-year maturity will see an interest rate of 7.05%, while those between one and two years have been adjusted to 6.75%.
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For deposits ranging from Rs 3 crore to less than Rs 10 crore, the revised interest rates are as follows: 5.75% for maturities between 91 and 179 days, 6.25% for 180 to 210 days, and 6.50% for 211 days to less than a year. The one-year deposit rate remains at 7.05%, and deposits maturing for more than one year but less than two years are set at 6.70%. In addition, the bank offers an additional 0.65% interest rate for super senior citizens and 0.50% for senior citizens on deposits below Rs 3 crore with a maturity period of six months and above.
On the other hand, the State Bank of India (SBI) has announced the discontinuation of its Amrit Kalash fixed deposit scheme. Details regarding the interest rate offered under this scheme were not disclosed in the announcement. However, the bank continues to provide alternative options for customers seeking fixed-term investments. The withdrawal of these high-interest schemes by two of India’s leading public sector banks signals a strategic shift in response to evolving market conditions and regulatory guidelines.
The decision by Bank of India and SBI to withdraw these products reflects the broader market dynamics where financial institutions recalibrate their offerings to manage liquidity and align with market trends. This move could influence other banks, such as Punjab National Bank and ICICI Bank, to re-evaluate their deposit offerings. Such shifts are not unusual in a competitive interest rate environment, where banks strive to balance attractive customer returns with sustainable financial management.
Read More: Punjab National Bank (PNB) cuts FD interest rates on these tenures: Check details
FD rate cut
Amid a changing monetary landscape, several major banks have revised their fixed deposit (FD) interest rates on select tenures for deposits below ₹3 crore. These revisions come in response to the Reserve Bank of India’s accommodative stance and follow similar moves by other lenders aiming to maintain balanced liquidity.
> Punjab National Bank (PNB) has revised its FD interest rates, now offering returns between 3.50% and 7.10% for tenures ranging from 7 days to 10 years. The highest interest rate of 7.10% applies to a 390-day deposit.
Senior citizens benefit from preferential rates, receiving:
An additional 50 basis points (bps) for deposits up to 5 years
80 bps extra for terms exceeding 5 years
Super senior citizens (80 years and above) enjoy an 80 bps premium across all maturities
> Shivalik Small Finance Bank lowers rates
Shivalik Small Finance Bank has cut its FD rates by up to 25 bps for deposits under ₹3 crore. The revised rates now range from:
3.50% to 8.30% for general customers
4% to 8.80% for senior citizens, with the highest rate down from 9.05% to 8.80%
Notably, Shivalik imposes a 1% penalty on interest earned for premature withdrawals, rather than applying the contracted rate.
> Kotak Mahindra and Canara Bank join the trend
Kotak Mahindra Bank has also adjusted its FD rates, aligning with the broader trend following the RBI’s monetary easing. The move is aimed at sustaining favourable liquidity conditions.
Meanwhile, Canara Bank has reduced FD rates by up to 20 bps for certain tenures. The bank now offers:
A 7.25% rate on 444-day deposits
Additional benefits for senior citizens include:
0.50% extra interest for deposits under Rs 3 crore (excluding NRO/NRE and CGA accounts)
Applicable for tenures of 180 days and above
