Axis Bank, one of the largest private banks in India, raised interest rates for Fixed Deposits (FD) with effect from 1 June 2018. This came in response to the raise in Fixed Deposit interest rates by State Bank of India (SBI) for the 1 to 2 year term, a few days back.
Axis offers as many as 27 deposit terms ranging from 7days – 14 days to 5 years – 10 years. The leading bank introduced a new term of 12 months 5 days – 12 months 11 days. For deposits below Rs.1 crore and deposits between Rs.1 crore and Rs.5 crore, the interest rates are 7.40% p.a. and 7.60% p.a. respectively. The interest rate for the same period in the case of senior citizens is 8.05% p.a. for deposits below Rs.1 crore and 8.25% p.a. for deposits between Rs.1 crore and Rs.5 crore. The rate for senior and non-senior citizens for deposits above Rs.5 crore is 7.60% p.a.
The interest rates offered by Axis bank differ based on the term chosen, the deposit value, and whether the individual is a senior citizen or not. The bank offers Domestic Fixed Deposits as well as NRI Fixed Deposits. Each of the two types has an additional variant – Domestic Fixed Deposit Plus and NRI Fixed Deposit Plus. The Deposit Plus types do not permit the account holder to withdraw the amount before maturity.
After SBI, the largest lending institution in the country, hiked the FD interest rates by 25 basis points, all private players were most likely to follow suit. ICICI and HDFC, 2 other leading banking institutions have not revised their FD interest rates yet. While ICICI last revised the rates on 11 December 2017, HDFC revised the rates towards the end of April.
Here’s a tabular representation of the interest rates offered by each of the banks for a 1-year term. The deposit value considered is below Rs.1 crore.
|Bank||Term||Interest rate for general citizens||Interest rate for senior citizens|
|State Bank of India||1 year < 2 years||6.65% p.a.||7.15% p.a.|
|Axis Bank||12 months 5 days < 12 months 11 days||7.40% p.a.||8.05% p.a.|
|ICICI Bank||1 year to 389 days||6.60% p.a.||7.10% p.a.|
|HDFC Bank||1 year||6.85% p.a.||7.35% p.a.|