Following the Reserve Bank of India’s (RBI) decision to reduce interest rates in its latest Monetary Policy Committee (MPC) meeting, many banks have begun to lower their deposit rates.
Major banks like SBI, HDFC Bank, and ICICI Bank have already made these changes.
Now, IDBI Bank has also reduced interest rates on its fixed deposits (FDs), which means customers will receive slightly lower returns on their FD investments.
However, there’s also good news — IDBI Bank has extended the deadline for its special fixed deposit scheme, the Utsav FD, allowing customers to invest in it until June 30, 2025.
IDBI Bank FD Interest Rates (General)
IDBI Bank offers fixed deposit options ranging from 7 days to 20 years, with interest rates between 3% and 7% for regular customers.
Senior citizens enjoy an additional 0.50% interest, with a maximum return of up to 7.50%.
These rates have been revised recently, and customers will now earn slightly lower returns than before.
What is IDBI Bank’s Utsav Callable FD?
The Utsav Callable FD is a special fixed deposit scheme introduced by IDBI Bank for a limited period.
According to the bank’s official website, this scheme is available in three tenures:
444 days
555 days
700 days
In this scheme, the interest rates range from 7.00% to 7.30% for regular customers.
Senior citizens benefit even more, as they receive 0.50% extra, meaning their effective interest rate can go up to 7.80%.
The Utsav FD is available for a limited time, and the investment window now extends until June 30, 2025.
ICICI Bank Also Reduces FD Interest Rates
Like IDBI Bank, ICICI Bank has also announced a cut in deposit interest rates, effective April 17.
ICICI has lowered its savings account rate by 25 basis points and FD rates by 50 basis points.
Customers can open FDs ranging from 7 days to 10 years, with interest rates now ranging between 3% and 7.55%.
Senior citizens get an additional 0.50%, just like IDBI Bank.
The highest FD interest is being offered on tenures between 18 months and 2 years.
Bottom Line
Customers of IDBI Bank and ICICI Bank should note the reduced FD rates while planning their investments.
However, those looking for higher returns and fixed income may still find value in special schemes like IDBI’s Utsav FD, especially for senior citizens who benefit from better rates.
And with the deadline extended till June 30, there’s still time to invest.
