Fixed deposit investors have received an important update as several banks have revised their FD interest rates during October 2026. Following the Reserve Bank of India’s repo rate increase earlier this month, ICICI Bank and Indian Bank have raised interest rates on selected fixed deposit schemes.
The latest changes are particularly relevant for customers planning to open a new FD or renew an existing deposit. Senior citizens can also benefit from additional interest offered under eligible bank schemes.
ICICI Bank Increases FD Interest Rates
ICICI Bank has increased interest rates by 0.10 percentage points on selected fixed deposits below ₹3 crore.
The revised rates include:
- General citizens: 6.60% per annum on selected tenures.
- Senior citizens: Up to 7.20% per annum on eligible deposits.
The revised rates apply to deposits with tenures ranging from three years and one day to five years, as well as selected longer-term deposits.
Indian Bank Revises Special FD Scheme Rates
Indian Bank has also increased interest rates on two special fixed deposit schemes.
The revised rates are:
| FD Scheme | Earlier Rate | New Rate |
|---|---|---|
| Ind Grow – 555 days | 6.65% | 6.80% |
| Ind Prosper – 777 days | 6.60% | 6.75% |
Senior citizens are eligible for an additional 0.50 percentage points on these schemes.
SBI and HDFC Bank FD Interest Rates
State Bank of India and HDFC Bank have not revised their rates following the latest October repo rate increase, according to the latest reported comparison.
Their reported FD rates are:
| Bank | General Citizens | Senior Citizens |
|---|---|---|
| SBI | Up to 6.40% | Up to 7.05% |
| HDFC Bank | Up to 6.50% | Up to 7.10% |
The highest rates depend on the deposit tenure and applicable conditions.
Why Are Banks Increasing FD Interest Rates?
The Reserve Bank of India increased the repo rate by 25 basis points, taking it from 5.25% to 5.50% .
Changes in the repo rate can influence banks’ borrowing costs and deposit pricing. As banks compete to attract savings, they may revise interest rates on selected FD tenures.
However, a repo rate increase does not automatically mean that every bank will increase its FD rates.
What Should FD Investors Know?
Customers should check the applicable interest rate, deposit tenure, premature withdrawal conditions and tax implications before opening a fixed deposit.
The rates mentioned above apply to specific deposit categories and tenures. Actual returns may differ depending on the amount deposited, customer category and bank rules.
With ICICI Bank and Indian Bank revising selected FD rates in October, depositors are keeping a close watch on further changes in the banking sector.
