After SBI, Axis Bank hikes fixed deposit interest rates; know who will benefit
Within days of SBI effecting a hike in term deposits, Axis Bank has also hiked its fixed deposit interest rates. A term deposit means a cash investment by a customer at banks and other financial institutions.
Just a few days after the largest lender State Bank of India (SBI) increased interest rate for a list of domestic term deposits, private lender Axis Bank has also followed suit. Axis Bank has increased interest rates of fixed deposits for not just the general public and senior citizen but also for NRIs. A term deposit means a cash investment by a customer at banks and other financial institutions. This cash is usually invested at an agreed rate of interest rate over a fixed tenure. Axis Bank has increased rates for deposits less than Rs 5 crore to as much as Rs 100 crore and above.
Here’s what you will receive for your deposits at Axis Bank.
Domestic Deposits below Rs 5 crore
For public
A customer will receive 7.10% interest rate for deposits below Rs 1 crore in a tenure 1 year and above. As for deposits from Rs 1 crore to below Rs 5 crore, one will earn 7.30% interest rate for the same tenure.
As for deposits made below Rs 1 crore for tenure 2 years less than 30 months, a customer will get 7% interest rate, and for deposits made between Rs 1 crore to below Rs 5 crore for same tenure will get 7.25% interest rate.
For 3 years to less than 5 years and 5 years to 10 years tenure, a customer will get 7% interest rate each for deposits made below Rs 1 crore and from Rs 1 crore to below Rs 5 crore.
Senior Citizens
This category is supposed to benefit more from the deposits interest rate hike.
For 1 year deposits, a senior citizen would get 7.75% and 7.95% interest rate for deposits made below Rs 1 crore and Rs 1 crore to below Rs 5 crore respectively.
In case of 2 years but less than 30 months, a customer will interest rate of 7.50% for deposits below Rs 1 crore, however will receive 7.75% interest rate for deposits from Rs 1 crore below Rs 5 crore.
Other tenures like 3 years to less than 5 years and 5 years up to 10 years, a senior citizen will receive 7.50% interest rate each for deposits below Rs 1 crore and also from Rs 1 crore to Rs 5 crore.
Deposits above Rs 5 crore for both senior citizen and general category
For 1 year, interest rate is 7.30% each for deposits from Rs 5 crore to below Rs 10 crores, deposits Rs 10 crore to below Rs 25 crore and for deposits from Rs 25 crore to below Rs 50 crore.
Deposits from Rs 50 crore to Rs 100 crore and above, interest rate is levied at 7.50% for 1 year tenure.
For the above mentioned deposits, interest rate will be 7.30% each for tenures starting 13 months to less than 3 years.
From 3 years to 10 years, deposits interest rate is 7% each.
Interest rates for NRIs
Below Rs 5 crore
For 1 year interest rate is at 7.10% for deposits below Rs 1 crore and 7.30% for deposits from Rs 1 crore to below Rs 5 crore.
Interest for tenure 12 months 5 days less than 12 months 11 days, interest rate is levied at 7.40% for deposits below Rs 1 crore and 7.60% deposits from Rs 1 crore below Rs 5 crore.
For tenure like 3 years less than 5 years and 5 years to 10 years, interest rate is 7% each for both below Rs 1 crore deposits and from Rs 1 crore to below Rs 5 crore deposit.
Deposits 5 crore and above
7.60% interest rate is available for deposits made in tenure 12 months 5 days but less than 12 months 11 days.
Recently, SBI hiked deposits rate in the range of 5 basis points and 25 basis points. however there is a catch, not all the tenures have seen a rise in their interest rates, only a few have.
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