Axis Bank, a leading Indian private sector lender has announced an increase in its Fixed Deposit (FD) rates, effective from Thursday, October 12, 2023. The revised rates offer up to 7.1% for the general public and 7.6% for senior citizens on tenures ranging from 15 months to 5 years. This adjustment reflects recent FD rate revisions by other banks in response to the Reserve Bank of India's (RBI) bi-monthly monetary policy announcement.
The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, unanimously decided to maintain the repo rate at 6.5% during their meeting from October 4-6, 2023. This decision influenced Axis Bank and other financial institutions to revise their FD rates.
Axis Bank offers a variety of interest rates based on tenure, with rates starting at 3% for 7-29 days, rising to 3.50% for 30-45 days, and further increasing to 4.25% for 46-60 days. For tenures of 61-3 months, the rate is 4.50%, while it is 4.75% for a period of 3-6 months and 5.75% for 6-9 months. The peak rate of 7.10% applies to longer tenures.
Customers can open an FD account with a minimum deposit of Rs 5,000 via online banking or Rs 10,000 in-branch. Tax-saving FDs provide a return of 7.10% for a five-year lock-in term and qualify for Section 80C exemption on investments up to Rs. 1.5 lakh.
The bank has also indicated that premature withdrawal of large deposits over Rs.5 crores held by non-individuals or non-HUFs might be restricted. Premature withdrawal is generally allowed for other FDs, albeit resulting in a reduced interest rate.
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