IDBI Bank reduced interest rates on FD, 'Utsav FD' scheme date extended to June 30

After the Reserve Bank of India (RBI) did not change the repo rate in its recent monetary policy but signaled a shift in stance, many banks have started reducing interest rates on deposits. IDBI Bank has now also revised its fixed deposit (FD) rates downward. In addition to this, the bank has extended the deadline of its special FD scheme ‘Utsav FD’ till June 30, 2025.

This move will impact customers looking for higher returns through fixed income instruments. While general FD rates have come down, the Utsav Callable FD continues to offer competitive rates for select tenures.

General Fixed Deposit Rates of IDBI Bank

Currently, IDBI Bank offers fixed deposits ranging from 7 days to 20 years. According to the revised rate chart, the interest rate for regular customers ranges from 3 percent to 7 percent, depending on the deposit tenure.

On the other hand, senior citizens receive an additional 0.50 percent interest, taking their maximum return up to 7.50 percent on select durations. These rates vary based on tenure and the type of FD selected.

IDBI Bank is currently offering FDs for tenures ranging from 7 days to 20 years. The bank's revised interest rates range from 3% to 7% for general customers.Senior citizens are given Rs. 0.50 lakh in between .
At the same time, senior citizens get 0.50 percent additional interest, due to which they are getting a maximum return of 7.50 percent in some schemes.

What is 'Utsav Callable FD'?

The Utsav Callable FD is a limited-period special fixed deposit scheme launched by IDBI Bank. It offers attractive returns on investments made for 444 days, 555 days, and 700 days.

According to the bank, the interest rates under this scheme range from 7.00 percent to 7.30 percent for regular customers, while senior citizens get up to 7.80 percent after the extra 0.50 percent benefit.

Utsav Callable FD is a special limited period scheme which offers higher interest rates on investments for tenures of 444 days, 555 days and 700 days.In this , general customers get
In this, general customers get interest ranging from 7.00 to 7.30 percent, whereas senior citizens are being given a maximum return of 7.80 percent.

ICICI and Other Banks Also Reduced Rates

Not just IDBI, several other private and public sector banks have also revised their FD interest rates. ICICI Bank has recently cut its FD rates by up to 50 basis points. The new rates came into effect from April 17, 2025.

ICICI Bank is now offering interest rates between 3.00 percent to 7.55 percent depending on the tenure. Senior citizens receive an additional 0.50 percent benefit.

ICICI Bank has also cut its FD rates from April 17. Now the bank is offering interest ranging from 3 percent to 7.55 percent, and senior citizens are getting an additional 0.50 percent benefit.

Important Note for Investors

If you are planning to invest in fixed deposits, it is advisable to compare different schemes offered by banks and consider special options like ‘Utsav FD’ if your investment horizon aligns with the offered tenure. Also, keep an eye on changes in RBI's policy which may further impact interest rates.

If you are planning to invest in FDs, do compare schemes of different banks and consider special options like 'Utsav FD' as per your investment period.