Axis Bank is the latest bank to hike its fixed deposit interest rates after most banks, both public and private, increased their rates following the Reserve Bank of India’s (RBI) repo rate hike in early August. The RBI increased its repo rate by 50 bps, which now stands at 5.4 per cent. Private sector lender Axis Bank has increased the interest rates on fixed deposits of amounts below Rs 2 crore, and also on bulk FDs from Rs 2 crore to Rs 100 crore and above. The new rates are effective from September 20, 2022.
As per the website, it is offering rates ranging from 2.75 per cent to 5.75 per cent for FD schemes below Rs 2 crore. The senior citizens will get better rates from 2.75 per cent to 6.50 per cent for the schemes starting from a minimum period of 7 days to a maximum of 10 years.
For the shortest duration, 7 days to 29 days, the bank is offering a 2.75 per cent interest rate. The rate is 3.25 per cent on tenures from 30 days to less than 3 months. The rate for tenure from 6 months to less than 9 months is 4.90 per cent. Further, the rate is 3.75 per cent on 3 months to less than 6 months tenures. The rate is 4.75 per cent for schemes from 9 months to less than 1 year.
While the rate on 9 months to less than 1-year tenures is 5 per cent, the revised rates for schemes 1 year to less than 1 year and 11 days tenure is 6.20 per cent.
For tenures 1 year 11 days
A closer look at all the rates for the general public and senior citizens:
|Tenure||General investors (deposits below Rs 2 crore)||Senior citizens (deposits below Rs 2 crore)|
|7 days to 29 days||2.75%||2.75%|
|30 days to 3 months||3.25%||3.25%|
|3 months to 6 months||3.75%||3.75%|
|6 months to 9 months||4.65%||4.90%|
|9 months to||4.75%||5.00%|
|1 year and 11 days||5.45%||6.20%|
|1 year 11 days||5.75%||6.50%|
|1 year 25 days – 2 years||5.60%||6.35%|
|2 years to 30 months||5.70%||6.45%|
|30 months to 3 years||5.70%||6.45%|
|5 years to 10 years||5.75%||6.50%|
Why opt for FDs?
FD schemes are considered useful tools to build an emergency or long-term corpus as they offer liquidity and assured income at regular intervals. A 2019 SEBI survey stated that despite high-return investment options available in the market, 95 per cent of Indian families prefer to multiply their savings through fixed deposits, where the biggest draw is the guaranteed returns. In comparison to stocks that keep moving due to market fluctuations. The FDs offer a good balance to one’s portfolio as stock markets are very volatile and may not give the desired return due to frequent ups and downs.
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