scorecardresearchAs Axis Bank raises interest rates on fixed deposits, these banks now offer over 6%

As Axis Bank raises interest rates on fixed deposits, these banks now offer over 6%

Updated: 07 Nov 2022, 03:26 PM IST
TL;DR.
A number of banks have lately raised interest rates on fixed deposits including State Bank of India, HDFC Bank and Yes Bank
Axis Bank offers an interest of 5.5 percent on its one-year fixed deposits. Photo: mint

Axis Bank offers an interest of 5.5 percent on its one-year fixed deposits. Photo: mint

Soon after HDFC Bank and Yes Bank raised their fixed deposit (FD) interest rates, Axis Bank has followed suit.

Now, Axis Bank offers an interest of 5.5 percent on its fixed deposits of one-year tenure. The rate of interest increases to 6.3 percent for term deposits of two-year and three-year tenors.

The rate of interest increases to 6.5 percent for five-year tenor. However, the short tenure term deposits will earn a lower interest. A deposit of three-month and six-month tenor will bring an income of 4.5 percent per annum. These new rates refer to deposits amounting to less than 2 crore, and were introduced on Nov 5, 2022 onwards.

The term deposits of tenor between 7 days to 45 days will fetch an interest of 3.5 percent. It increases to 4 percent when the tenor is 60 days and to 4.5 percent when the tenor is anywhere between 61 days to 6 months.

Tenor            Rate of interest (%)
3 months         4.5 percent
6 months        4.5 percent
1 year              5.5 percent
2 years           6.3 percent
3 years           6.3 percent
5 years           6.5 percent
>5 years        6.5 percent

Interest rates offered by other banks:

It is worth mentioning that HDFC Bank raised its term deposit interest rates with effect from October 26, 2022.

Now, HDFC Bank offers 6.10 percent on its term deposits of one-year tenor while the two-year and three-year deposits fetch an interest of 6.15 percent and 6.25 percent, respectively, to depositors.

Prior to HDFC Bank, State Bank of India (SBI) also raised interest rates the second time in a short span of one week. Now, SBI offers 6.10 percent on its one-year deposit and 6.25 percent on its two-year deposits, and 6.10 percent on its three-year deposits.

BankInterest on 1-year deposits (%) Interest on 2-year deposits (%)
HDFC Bank                                      6.106.15
SBI                                      6.106.25
Kotak Mahindra Bank              6.106.30
Axis Bank                                   5.56.3
ICICI Bank                                        6.16.15

Kotak Mahindra Bank also raised its FD rates recently. It now offers 6.10 percent on its FDs of one-year tenor and 6.30 percent on its FDs of two tenor, and 6.25 percent for three-year tenor.

Also, ICICI Bank raised interest rates on its term deposit on the last day of September. Now, it offers 6.10 percent, 6.15 percent and 6.20 percent on its one-year, two-year and three-year deposits, respectively.

A number of banks raised fixed deposit (FD) rates in August alone after the banking regulator raised repo rates to 5.4 percent on August 5. These banks were Canara Bank, ICICI Bank, Indian Bank, Bank of Baroda, DBS Bank, Fincare SFB and IDBI Bank.

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First Published: 07 Nov 2022, 03:25 PM IST