FD Rates After the Repo Hike: Who Has Raised Them So Far
Bajaj Finance and Shriram Finance raised FD rates after the RBI hike, up to 7.85%. SBI, HDFC Bank and ICICI Bank have not moved yet. What savers should do.
By Balaji Anbazhagan
· 4 min read
On this page
The RBI raised the repo rate to 5.50% on 7 October, and fixed deposit rates have started to follow. So far it is the non-banking finance companies (NBFCs) that have moved first. Bajaj Finance raised its FD rates by up to 0.40% on the day of the hike, and Shriram Finance raised its rates to as much as 7.85% from 11 October. The big banks (SBI, HDFC Bank and ICICI Bank) had not changed their FD rates when this was written.
The short answer
- Bajaj Finance: up 0.15% to 0.40% from 7 October. Top rate 7.75% (8.15% for senior citizens) on 31–60 months.
- Shriram Finance: up from 11 October. Top rate 7.85% on 36–60 months, plus 0.50% extra for senior citizens.
- Big banks: no change yet. SBI’s top rate is 6.40%, HDFC Bank’s 6.50%.
- Your existing FD keeps its rate until it matures. Only new deposits and renewals get the new rates.
- NBFC deposits are not covered by the ₹5 lakh deposit insurance that protects bank FDs.
Bajaj Finance: new FD rates from 7 October
| Tenure | General (new) | Increase | Senior citizens (new) | Earlier |
|---|---|---|---|---|
| 12–17 months | 6.80% | +0.20% | 7.20% | 6.95% |
| 18–30 months | 7.00% | +0.15% | 7.40% | 7.20% |
| 31–60 months | 7.75% | +0.35% | 8.15% | 7.75% |
Shriram Finance: new FD rates from 11 October
| Tenure | Earlier | New |
|---|---|---|
| 12 months | 6.85% | 7.00% |
| 15 months (online only) | 7.10% | 7.50% |
| 18–23 months | 7.05% | 7.25% |
| 24–35 months | 7.10% | 7.50% |
| 36–60 months | 7.50% | 7.85% |
Senior citizens (60 or older when they deposit or renew) get 0.50% more on every tenure, so up to 8.35%. Women depositors get 0.05% more, and renewals of matured deposits get 0.15% more. The minimum deposit is ₹5,000. Shriram Finance’s deposits are rated AAA by CRISIL, ICRA, India Ratings and CARE.
Where the big banks stand
On 7 October, the day of the hike, the largest banks had not changed their FD rates:
| Bank | General | Senior citizens |
|---|---|---|
| SBI | 3.05% – 6.40% | 3.55% – 7.05% |
| HDFC Bank | 2.75% – 6.50% | 3.25% – 7.10% |
| ICICI Bank | 2.75% – 6.50% | 3.25% – 7.10% |
These are rates on deposits below ₹3 crore. Banks usually raise deposit rates in steps over the weeks after a hike, and not by the full 0.25%. Several fund managers expect one more repo hike at the 2–4 December meeting, which would push deposit rates up further. For the latest rates across banks, see the FD interest rates page.
Bank FD or NBFC FD?
NBFC deposits pay more, but they come with a different kind of risk:
- Deposit insurance. Bank FDs are insured by DICGC up to ₹5 lakh per depositor per bank. NBFC deposits have no such cover.
- Credit rating. Only put money in NBFC deposits rated AAA, and keep checking the rating while your money is there.
- Premature withdrawal. NBFCs usually do not allow withdrawals in the first three months, and they pay a lower rate if you break the deposit early. Bank rules are usually more flexible.
A common approach is to keep your emergency fund in a bank and use top-rated NBFC deposits only for money you will not need before maturity.
What to do now
- If your FD is about to mature, compare rates before you let it renew automatically. A renewal at the old rate can cost you up to 0.40% a year.
- If you are opening a new FD, consider a shorter tenure, or split the money across one-, two- and three-year deposits. If rates rise again in December, you can reinvest part of it at the higher rate.
- Senior citizens should also compare with the Senior Citizens’ Savings Scheme at 8.2%, which the government backs.
- Work out the maturity amount for any rate and tenure with the FD calculator.
Since 1 October, RBI rules also require banks to pay the same FD rate at every branch, so you can ask for the published rate wherever you open the deposit.
Frequently asked questions
Will my existing FD rate go up? No. A fixed deposit keeps the rate it was booked at until maturity. The new rates apply only to new deposits and renewals.
Which banks have raised FD rates after the October 2026 repo hike? When this was written, SBI, HDFC Bank and ICICI Bank had not announced changes. The first increases came from NBFCs: Bajaj Finance (7 October) and Shriram Finance (11 October).
Should I break my FD to reinvest at a higher rate? Usually not for a small rise. Banks cut 0.5% to 1% from the rate if you withdraw early, which wipes out a 0.2–0.4% gain. Do the sums before you break a deposit.
Are NBFC FDs safe? They are not covered by deposit insurance, so the risk depends on the company. Stick to AAA-rated deposits and do not put all your savings in one place.
Sources
- Goodreturns, “RBI Hiked Repo Rate: Will Banks & NBFCs Hike FD Interest Rates By 25 Bps? SBI, HDFC, ICICI, Bajaj Latest FD Rates”, 7 October 2026: goodreturns.in
- Business Today, “Shriram Finance raises FD rates to 7.85%; revised rates effective October 11”, 9 October 2026: businesstoday.in
- Upstox, “RBI October MPC: repo rate hiked for the first time in nearly 4 years, what it means for fixed deposit investors”, 7 October 2026: upstox.com
This article is for general information and education, not financial, tax or investment advice. Rules and rates change; check official sources or consult a qualified professional before acting. See our disclaimer.