Several banks, including HDFC Bank, ICICI Bank, Bank of Baroda, Punjab National Bank (PNB) and Canara Bank, have revised their fixed deposit (FD) interest rates in November. The changes cover select tenures, with PNB offering up to 6.60% to general customers and 7.10% to senior citizens on its 444-day FD, while Canara Bank’s 555-day deposit offers up to 6.75% and 7.25%, respectively.
Banks are facing tighter liquidity conditions as credit growth continues to outpace deposit growth. The Reserve Bank of India‘s (RBI) 25-basis-point repo rate hike in October, which took the policy rate to 5.50%, has also added to the changing interest rate environment.
However, the revisions are not across all deposit tenures. Banks are selectively increasing rates on specific maturities and special FD schemes to attract fresh deposits.
Which banks have raised FD interest rates recently?
Several public and private sector banks have revised their FD rates. Here are some of the key changes.
Bank of Baroda FD rate hike
Bank of Baroda increased interest rates on its special 555-day BoB Golden Goal fixed deposit scheme by 10 basis points (bps), effective November 12.
General customers, including NRIs holding NRO and NRE accounts, can earn 6.85% on callable deposits and 6.90% on non-callable deposits. Resident senior citizens get 7.35% and 7.40%, respectively.
For resident super senior citizens aged 80 years and above, the rates stand at 7.45% on callable deposits and 7.50% on non-callable deposits. The scheme is available on retail term deposits below ₹3 crore. Rates on other deposit tenures remain unchanged.
HDFC Bank FD rate hike
HDFC Bank raised FD interest rates by up to 50 bps on select tenures. The revisions cover deposits with maturities ranging from 61 days to six months, as well as select long-term deposits of five years to 10 years.
ICICI Bank FD rate hike
ICICI Bank increased FD interest rates by 10 bps on select longer-term deposits.
Bank of India FD rate hike
Bank of India raised retail term deposit rates by 10-35 bps on maturities ranging from one year to less than three years. The revised rates came into effect on November 2.
Punjab National Bank FD rate hike
Punjab National Bank’s revised FD rates came into effect on November 1. General customers can earn up to 6.60% on the 444-day special FD scheme, while senior citizens can get up to 7.10% on the same tenure. The bank also offers 6.50% to general customers and 7% to senior citizens on its 666-day deposit.
Canara Bank FD rate hike
Canara Bank revised interest rates on select domestic term deposits below ₹3 crore from November 2. General customers can earn up to 6.75% on the 555-day special FD scheme, while senior citizens get up to 7.25%. On the 444-day deposit, the rates are 6.65% for general customers and 7.15% for senior citizens.
Federal Bank FD rate hike
Federal Bank increased the additional interest benefit for senior citizens from 0.50% to 0.60%. Senior citizens can now earn up to 7.50% on select tenures.
The revised rates include 7.40% on deposits with a premature withdrawal facility and 7.50% on eligible deposits of ₹1 crore and above without premature withdrawal.
Indian Overseas Bank FD rate hike
Indian Overseas Bank raised the interest rate on its 444-day deposit by 15 bps to 6.75%.
Indian Bank FD rate hike
Indian Bank increased rates on its special 555-day and 777-day deposit schemes by 15 bps each, taking them to 6.80% and 6.75%, respectively.
Small finance bank FD rates
Small finance banks are also offering higher rates to attract deposits. Suryoday Small Finance Bank offers up to 8.60% to senior citizens, while Utkarsh Small Finance Bank offers up to 8.50% on select tenures.
Why are banks raising FD interest rates?
One of the key reasons behind the recent revisions is the tightening of liquidity in the banking system. Banks need to mobilise more deposits to support lending, particularly as credit growth continues to outpace deposit growth.
Surplus liquidity in the banking system is shrinking
The banking system’s liquidity surplus had touched around ₹11 lakh crore following inflows through the RBI’s special concessional window for Foreign Currency Non-Resident (Bank) deposits, known as FCNR-B deposits.
However, the surplus has since declined. Net surplus liquidity stood at around ₹1.53 lakh crore, according to the figures cited in the recent reports.
The RBI has also absorbed surplus liquidity through variable rate reverse repo (VRRR) auctions and open market operations, including the sale of government bonds. Meanwhile, inflows through the FCNR-B window have started receding.
With surplus liquidity declining, banks are facing greater pressure to attract deposits and strengthen their funding position.
Credit growth is outpacing deposit growth
Another factor is the gap between credit and deposit growth. Bank credit grew 18.2% as of the end of October, while deposit growth stood at 16.7%.
This means banks are lending at a faster pace than they are mobilising deposits. As loan demand rises, lenders need to secure more funds to maintain their lending activity.
Higher FD rates can help banks attract fresh deposits and improve their liability position.
Competition for deposits is intensifying
Banks are also competing to attract retail deposits as they look to reduce their dependence on expensive bulk deposits.
Some lenders have indicated that FCNR-B inflows would help them replace higher-cost bulk deposits and improve their liability profiles. However, as these inflows recede, attracting fresh retail deposits becomes more important.
Selective rate increases allow banks to offer better returns on specific maturities without raising the cost of their entire deposit portfolio.
What does the RBI’s repo rate hike have to do with FD rates?
The RBI raised the repo rate by 25 bps to 5.50% in October after keeping it unchanged at 5.25% for four consecutive monetary policy meetings.
A repo rate increase can influence borrowing and deposit rates across the banking system. Banks may raise FD rates to attract savings, particularly when they need more funds to support credit growth.
Lending rates have also started moving up. SBI, HDFC Bank, Punjab National Bank, Bank of India, Indian Bank, Canara Bank and Bank of Baroda have raised their marginal cost of funds-based lending rates (MCLR) by 5-20 bps across select tenures in October and November.
Will existing FD holders get higher interest rates?
No. The recent FD rate increases generally apply to fresh deposits and renewals after maturity. Existing fixed deposits continue to earn the interest rate agreed upon when they were booked, until maturity.
Depositors looking to reinvest their money after maturity may benefit from the revised rates, depending on the bank and tenure they choose.
What should depositors check before booking an FD?
Before booking a fixed deposit, depositors should compare rates across banks and tenures rather than looking only at the highest advertised rate.
They should also check whether the rate applies to callable or non-callable deposits, the premature withdrawal conditions and the minimum deposit amount. Senior citizens should verify the additional interest benefit available to them.
The highest FD rate may not always be the most suitable option. Depositors should consider the tenure, access to funds and terms of the deposit before investing.
Read More: FD rates in November 2026: Which banks offer the highest interest rates?