Fixed deposits: These two banks have revised rates

Fixed deposits (FD) are one of the most popular ways in which common people park their savings. Many consider value it for guaranteed and predictable returns. In the past few days two private sector banks Karur Vysya Bank and Axis Bank revised their interest rates on fixed deposits. Both banks offer FD tenures ranging from seven days to 10 years. Interest rates vary from bank by bank. So, it is important for a citizen to know the latest FD rates in these banks.

Karur Vysya Bank

In recent times, various private and as well as public sector banks have revised interest rates on fixed deposits. Karur Vysya Bank is the latest in this list. It has revised interest rates on fixed deposits which came into effect from October 8, 2021. After the latest revision it is offering a minimum of 3.25% and a maximum of 5.60% interest on deposits up to Rs 2 crore to the general public.

However, the rates applicable for senior citizens is between 5.65% and 5.75% for selected tenure. Take a look on tenure-wise interest rates to general public:

— 7 days to 14 days, 15 days to 30 days, 31 days to 45 days, 46 days to 90 days: 3.25%

— 91 days to 120 days: 3.50%

— 121 days to 180 days: 3.75%

— 181 Days to 270 days: 4.00%

— 271 Days to less than 1 year: 4.25%

— 1 year to less than 2 years: 5.15%

— 2 years to less than 3 years, 3 years to less than 5 years: 5.25%

— 5 years and above: 5.60%

— KVB – Tax Shield: 5.75%

Axis Bank

Axis Bank has also revised interest rates on fixed deposits. After the latest revision it is offering a minimum interest rate of 2.50% on FDs with maturity between seven days and 29 days and a maximum rate of 5.75% on five years to 10 years tenure to the general public up to Rs 2 crore deposit.

Tenure-wise rates:

— 7 days to 14 days, 15 days to 29 days: 2.5%

— 30 days to 45 days, 46 days to 60 days, 61 days to < 3 months: 3%

— 3 months to < 4 months, 4 months to < 5 months, months to < 6 months: 3.5%

— 6 months to < 7 months, 7 months to < 8 months, 8 months to < 9 months, 9 months to < 10 months, 10 months to < 11 months, 11 months to < 11 months 25 days, 11 months 25 days to < 1 year: 4.4%

— 1 year to < 1 year 5 days, 1 year 11 days to < 1 year 25 days, 1 year 25 days to < 13 months, 13 months to < 14 months, 14 months to < 15 months, 15 months to < 16 months, 16 months to < 17 months, 17 months to < 18 months: 5.1%

— 1 year 5 days to < 1 year 11 days: 5.15%

— 18 months to < 2 years: 5.25%

— 2 years to < 30 months, 30 months to < 3 years, 3 years to < 5 years: 5.4%

— 5 years to 10 years: 5.75%

But senior citizens can get a maximum 6.50% interest on fixed deposits in Axis Bank.

Other banks

State Bank of India (SBI), the country’s largest lender, offers interest rates between 2.90% to 5.40% on FDs for deposits below Rs 2 crore for tenure between seven days and 10 years to the general public. But senior citizens will earn up to 0.80% extra for the same tenure. This rate has been effective since January 1, 2021.

On the other hand, HDFC Bank, the largest private sector bank, now offers 2.50% to 5.50% interest on FDs up to Rs 2 crore for the general public. Like other government-owned banks, HDFC Bank is also giving extra interest on FDs to senior citizens. Now, senior citizens can get 3% to 6.25% interest on their deposits in HDFC Bank.