Bank FD: There is a stir in the Indian banking sector regarding fixed deposit (FD) interest rates. IndusInd Bank has increased interest rates, while Kotak Mahindra Bank has taken a balanced approach. Both banks aim to attract more and more depositors, which is increasing competition.

IndusInd Bank's big move, emphasis on short and medium-term FDs-

IndusInd Bank has increased its FD interest rates from 29 April 2025. The bank has focused especially on short and medium term FDs. For example, the interest rate on FDs of 61 to 90 days has been increased from 4.75% to 5%. This will give better returns to investors.

At the same time, 7% interest will now be given directly on FDs of 181 to 364 days. Earlier, the rates on FDs of these periods were between 5.85% to 6.5%, that is, an increase of more than 1% has been made.

The most attractive rates have been applied to those FD schemes which are between 1 year 3 months to 1 year 6 months. In this category, general customers will get an annual interest of 7.75% and senior citizens 8.25%.

Kotak Mahindra Bank's balanced stance, new FD period offered-
Kotak Mahindra Bank has revised some of its FD rates from 30 April 2025. However, there is no aggression like IndusInd here. Kotak has reduced the interest rate on FDs of 390 days from 7% to 6.9%. Apart from this, the bank has introduced a new FD period of 19 days. In this, general customers will get 5% interest and senior citizens will get 5.5% interest.

This is Kotak Mahindra's third interest rate revision this month, which shows that the bank is constantly taking steps keeping in mind the pulse of the market.

A look at the interest rates of other big banks as well-

After the repo rate cut by RBI, many big banks in the country are taking new decisions regarding FD rates:

SBI gives 3.5% to 6.9% interest to general customers, 4% to 7.4% interest to senior citizens.

In the "Amrit Vrishti" scheme, 7.05% (general), and 7.55% (senior) interest on FD of 444 days.

HDFC Bank: 3% to 7% (common), 3.5% to 7.5% (senior)

ICICI Bank: 3% to 7.05% (common), 3.5% to 7.55% (senior)

Axis Bank: 3% to 7.05% (common), 3.5% to 7.55% (senior)

IDBI Bank: "Utsav Callable FD" scheme offers interest up to 7.35% (common) and 7.85% (senior)

IndusInd's strategy: To rise in the market with the help of high returns-
IndusInd Bank's new strategy is an indication of giving better returns to FD investors. It offers attractive rates, especially for investors with tenures of 6 months to 2 years. Through this, the bank wants to increase its market share and allow investors to profit.

Kotak's policy: Low risk, flexible options-

On the other hand, Kotak Mahindra Bank is taking a more safe and cautious approach. The bank is offering more options for small investors by introducing new term FD schemes, but the rates are not as attractive as IndusInd.

Which bank's FD is better?
If you are investing in FD for a short period and want more interest, then IndusInd Bank is a good option. On the other hand, if you want flexible options and balanced returns, then Kotak Mahindra's schemes can also be suitable. The right choice depends on your requirements.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.