FD Rates Hiked After RBI Repo Hike: ICICI, Indian Bank Pay More — SBI, HDFC Don’t
ICICI Bank and Indian Bank have raised FD rates after the RBI's October 2026 repo hike, while SBI and HDFC Bank have held. Compare the best rates and see whether to book now.
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After the RBI raised the repo rate by 0.25% to 5.50% on 7 October 2026, the first banks have started paying more on fixed deposits. ICICI Bank and Indian Bank raised FD rates from 23 October 2026, while SBI and HDFC Bank have kept their rates unchanged so far. Here are the new rates, how the big banks compare and whether you should lock in an FD now.
Quick answer: ICICI Bank now pays up to 6.60% (7.20% for seniors) on 3–5 year FDs. Indian Bank pays 6.80% on its 555-day Ind Grow deposit. SBI (up to 6.40%) and HDFC Bank (up to 6.50%) have not changed rates since the hike.
Key takeaways
- The RBI hiked the repo rate to 5.50% on 7 October 2026, its first hike in about four years, and moved to a “calibrated tightening” stance.
- ICICI Bank raised select FD rates by 0.10% from 23 October; Indian Bank raised two special deposits by 0.15%.
- SBI’s chairman said banks may not raise deposit rates for two to three months because liquidity is comfortable.
- Loan rates have moved faster than deposit rates: SBI raised its EBLR to 8.15% from 15 October.
- With more hikes possible, a ladder of FDs across 1, 2 and 3 years lets you lock in today’s rates and reinvest at higher ones later.
Which banks raised FD rates?
| Bank | What changed | New rate (general) | Senior citizens | Effective |
|---|---|---|---|---|
| ICICI Bank | +0.10% on select tenures | 6.60% (3 yrs 1 day – 5 yrs) | up to 7.20% | 23 Oct 2026 |
| Indian Bank | Ind Grow 555 days: 6.65% → 6.80% | 6.80% | 7.30% | 23 Oct 2026 |
| Indian Bank | Ind Prosper 777 days: 6.60% → 6.75% | 6.75% | 7.25% | 23 Oct 2026 |
Banks that have not raised FD rates yet
| Bank | Highest general rate | Highest senior rate | Rates effective since |
|---|---|---|---|
| SBI | 6.40% | 7.05% | No change after the hike |
| HDFC Bank | 6.50% (3 yrs 1 day – 4 yrs 7 months) | 7.10% | 19 Aug 2026 |
| Punjab National Bank | 6.60% (444 days) | 7.10% (super seniors 7.40%) | 1 Jun 2026 |
| Bank of Baroda | 6.75% (555-day Golden Goal) | 7.25% (super seniors 7.35%) | 12 Jun 2026 |
Why FD rates are rising slowly
When the RBI raises the repo rate, banks pass it on to borrowers almost at once, because more than half of bank loans are linked to external benchmarks like the repo rate. Deposit rates are different: banks raise them only when they need more money. SBI chairman C. S. Setty said a day after the policy that he does not expect deposit rate changes for the next two to three months, since the banking system has surplus liquidity. That is why SBI raised its lending rates on 15 October but left FD rates alone. Read more in SBI hikes EBLR and MCLR.
How much more will you earn?
On a ₹5 lakh FD for three years (quarterly compounding), the gap between banks is a few thousand rupees:
| Rate | Maturity value | Interest earned |
|---|---|---|
| 6.40% (SBI) | ₹6,04,915 | ₹1,04,915 |
| 6.50% (HDFC Bank) | ₹6,06,704 | ₹1,06,704 |
| 6.60% (ICICI Bank) | ₹6,08,497 | ₹1,08,497 |
| 7.20% (ICICI, senior citizen) | ₹6,19,360 | ₹1,19,360 |
Should you book an FD now or wait?
- If you need safety and a fixed income: book now with the best-paying bank. With big banks expected to hold deposit rates for a few months, waiting may not earn you much more.
- If you expect more hikes: build a ladder. Split your money into 1, 2 and 3-year FDs, so part of it matures every year and can be reinvested at higher rates.
- Senior citizens: also compare the Senior Citizens Savings Scheme at 8.2%, which beats every bank FD. See the small savings rates for Oct–Dec 2026.
- For long-term goals: an FD rarely beats inflation after tax. Compare it with an SIP using our FD vs SIP calculator.
Tax tip: banks deduct TDS once your FD interest crosses the yearly threshold. If your total income is below the taxable limit, submit Form 15G (or 15H for seniors) at the start of the year to avoid TDS.
Frequently asked questions
Will FD rates increase after the RBI repo rate hike?
Some banks have already raised them: ICICI Bank and Indian Bank from 23 October 2026. SBI’s chairman expects most banks to wait two to three months, as liquidity is comfortable.
Which bank gives the highest FD rate in October 2026?
Among large banks, Indian Bank pays 6.80% on its 555-day deposit and Bank of Baroda 6.75% on its 555-day Golden Goal deposit. Small finance banks pay more, with higher risk.
Has SBI increased FD rates after the repo hike?
No. SBI has kept FD rates unchanged at up to 6.40% for general customers and 7.05% for seniors, though it raised loan rates from 15 October.
What is the current repo rate?
5.50%, after a 0.25% hike on 7 October 2026.
Should I break my old FD to reinvest at a higher rate?
Only if the new rate is clearly higher after the premature withdrawal penalty, usually 0.5% to 1%. For a 0.10% to 0.15% rise, it is rarely worth it.
Related guides and calculators
- SBI hikes EBLR and MCLR: EMI impact
- Money rule changes from 1 November 2026
- Small savings interest rates Oct–Dec 2026
- FD calculator
- FD vs SIP calculator
Sources: RBI · ICICI Bank · Indian Bank · SBI. Last checked 30 October 2026. Figures are estimates for guidance, not tax or financial advice. How we research and fact-check.
This guide is for information only and isn’t financial advice. Rates, fees and rules change — always confirm on the official website before you decide. Read our disclaimer.
