Axis Bank hikes FD interest rates: Senior citizens can earn up to 7.75%

Axis Bank has increased fixed deposit (FD) interest rates for amounts less than Rs 2 crore. The new rates are effective from December 15, 2022. The bank had previously hiked FD rates on November 15, 2022.

Axis Bank latest FD interest rates
After the latest hike, fixed deposit interest rates for maturities between 6 months to 9 months have increased to 5.75%.
Deposits maturing in 9 months to less than one year will now earn an interest rate of 6%. The bank will offer an interest rate of 6.75% for tenure ranging from 1 year to less than 2 years. For deposits maturing in 2 years to less than 10 years, the bank is offering an interest rate of 7%.

Senior Citizen FD rates
Axis Bank offers higher interest rates for senior citizens – it offers interest rates between 3.50% and 7.75% for tenures ranging from 7 days to 10 years.

Digital Fixed Deposit
Axis Bank provides digital fixed deposits, which can be opened without an Axis Bank Savings Account by providing basic information. It has a slew of benefits, including competitive FD interest rates, no issuance fees, and no penalty for early withdrawal (up to 25% of the amount).

RBI hike
Fixed deposit and lending rates are projected to increase in tandem with an increase in the central bank's policy repo rate. FD depositors will once again enjoy the outcome as a result of the RBI's 35 basis point rate increase for the December policy. Since May, banks have increased their FD rates sharply in accordance with the results of the RBI's policy decisions, thus enhancing the appeal of FD investment.

Other banks
Other banks that have hiked FD interest rates include SBI, Kotak Mahindra Bank and HDFC Bank in the last one week. SBI increased FD interest rates by up to 65 basis points. After the hike, the highest FD rate SBI is offering is 6.75% for regular citizens and 7.25% for senior citizens. HDFC Bank offers fixed-term deposit (FD) interest rates ranging from 3% to 7% for the general public and 3.50% to 7.50% for senior citizens for tenure between 7 days to 10 years.

Also read: HDFC Bank hikes FD interest rate by up to 75 bps
Also read: Kotak Mahindra Bank hikes FD interest rates for third time in a week