Axis Bank Hikes Interest Rates On FD: There is good news for those who keep their hard earned money in bank FDs. Private sector Axis Bank has announced an increase in interest rates on fixed deposits. The decision to increase the interest rates on FDs of Axis Bank has come into effect from 12 May 2022. Axis Bank offers term deposits ranging from 7 days to 10 years. On which now interest from 2.50 percent to 5.75 percent will be available.
Know how much interest you will get
4.75 percent interest will be available on FDs with a tenor of one year up to Rs 2 crore. From now onwards, 5.30 percent interest will be available on FDs with a tenure of 2 years, 5.60 percent on FDs of 3 to 5 years and 5.75 percent on FDs of 5 to 10 years.
Senior citizens will get more interest
Senior citizens will get 5 percent interest on FDs of one year tenor up to Rs 2 crore. From now onwards, 5.95 percent interest will be available on FDs of 2 years tenor, 6.25 percent on FDs of 3 to 5 years and 6.50 percent on FDs with tenures of 5 to 10 years. That is, 0.75 percent more than normal people.
Effect of hike in repo rate and CRR
After the decision of RBI to increase the repo rate by 40 basis points and CRR (Cash Reserve Ratio) by 50 basis points, banks have started increasing the interest rates on FDs. For those taking loans from the bank, even though the increase in interest rates has brought inflation. But those who keep their deposits in the bank in the form of FD are going to get more returns.
Banks are increasing interest rates on FDs
After the RBI’s decision to increase the repo rate on May 4, many banks have increased interest rates on deposits. In which apart from Bandhan Bank, Kotak Mahindra Bank, Bank of Baroda, ICICI Bank are included. These banks have announced to increase interest rates for retail customers on fixed deposits of different tenors. Kotak Mahindra Bank has increased the interest rates on FDs of 390 days by 30 basis points and on FDs of 23 months by 35 basis points in FD rates.
Decided to increase Bandhan Bank has also decided to increase the interest rates by 50 basis points on FDs with tenor between one year to 18 months and tenor between 18 months to 2 years. Although this is the beginning, it is believed that in the coming times, many banks are going to decide to increase the interest rates to make fixed deposits attractive.
Increased investment in mutual funds due to low returns
In fact, the interest rates on FDs had come down significantly in the last few years. Due to which investors were investing in riskier returns such as mutual funds or stock market for better returns instead of depositing money in banks. But for the time being, even though the RBI has increased the repo rate by 40 basis points, but it is likely to increase further in the coming days. In such a situation, interest rates on fixed deposits are expected to increase in the coming days.
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