ICICI Bank, Axis Bank, and IDFC Bank have revised the interest rates on bulk fixed deposits (FDs) of Rs 2 crore to less than Rs 5 crore for the week ending September 9, 2023. Fixed deposits are usually the first choice for senior citizens because of their guaranteed returns.

Here are the details of the interest rate hikes for bulk deposits.  

ICICI Bank:   

The ICICI Bank revised the FD rates on September 8, 2023, for bulk deposits of Rs 2 crore to less than Rs 5 crore. The highest interest for senior citizens is 7.25 per cent for one year to 389 days and 390 days to less than 50 months tenures. For the general public, the interest rate is the same for bulk FDs. For 10-year FDs, the interest is 6.75 per cent.  

If withdrawn before seven days, no interest will be paid, applicable to both domestic and non-resident ordinary accounts. Also, no interest will be paid for non-resident external (NRE) deposits if withdrawn within a year from the date of deposit.  

On FDs for less than Rs 2 crore, seniors can earn a maximum interest of 7.60 per cent, or 50 basis points more than the general public, for tenures of 15-18 months and 18 months-2 years.   

IDFC First Bank:  

IDFC First Bank is offering a maximum of 7.60 per cent interest on its high-value FDs of Rs 2 crores and above. For non-breakable FDs (where premature withdrawal is not allowed) of Rs 2 crore to less than Rs 5 crore, one can earn 7.60 per cent for deposits of 366-399 days. On a 10-year FD, the rate is 7.10 per cent.  

For the breakable FDs (where premature withdrawal is allowed), the interest is 7.60 per cent, and the tenure is 366-399 days for Rs 2 crore to Rs 5 crore deposits. The interest rates for other durations are lower by 10-20 points. The interest rate for a 10-year FD is 6.90 per cent. 

As per the bank’s website, “Incentive for senior citizens will be at an additional spread of 0.50% over the rate of deposit for the respective tenor and will not be available for NRE or NRO fixed deposits.” The banks revised the rates on September 8, 2023.  

Axis Bank  

Axis Bank revised the rates on its ‘Fixed Deposit Plus’ FDs on September 6, 2023. Fixed Deposit Plus FDs are for Rs 2 crore and above. The bank does not allow premature withdrawals from these FDs. The interest ranges from 5.50 per cent to 7.20 per cent for Rs 2 crore to less than Rs 5 crore FDs. The highest rate is 7.45 per cent for one year to one year and four days.

For NRE accounts, the rates were revised on September 6. The highest interest rate and the respective FD tenure are the same (7.45 per cent for one year to one year and four days) for domestic deposits of Rs 2 crore to less than Rs 5 crore FDs. However, for NRE accounts, the minimum FD tenure is one year instead of seven days for deposits in domestic accounts.