landing img
Invest

These Two Banks Have Revised FD Rates By Up To 7.80%: Learn More

Ahead of RBI's Monetary Policy Committee (MPC) meeting from October 4-6, 2023, these two private-sector banks have revised the interest rates on FDs. Check details

September 23, 2023
September 23, 2023
Revision Of FD Rates In Two Banks

Revision Of FD Rates In Two Banks

The Reserve Bank of India (RBI) has kept the benchmark repo rates unchanged in its last three monetary policy committee (MPC) meetings, and whether it will continue with the same policy when it meets from October 4-6, 2023, has generated a renewed interest in the market. 

 

Advertisement

With the second quarter of FY2023-24 at the fag end, MPC’s next possible move has been of interest. Amid this, two private-sector banks have revised their interest rates on fixed deposits (FDs) up to 7.80 per cent for senior citizens in the week ending September 23, 2023. 

 

Advertisement

Let’s check the rate updates in detail. 

 

Federal Bank 

 

On September 21, 2023, the Federal Bank revised its FD rates, ranging from 3.50 per cent to 7.80 per cent for the smallest tenure of seven days to up to five years and above.  

 

For FDs of one year to less than 13 months, the bank is offering 7.30 per cent interest. For 13 to 21 months, it is 7.80 per cent, the bank’s highest interest rate on FDs. The annualised return on these rates would be around 7.50 per cent and 8.06 per cent, respectively.  

 

If the FD is held longer, the benefit of compounding will get bigger. For instance, if an FD offering 7.80 per cent is retained for 21 months instead of 13 months, it would generate around 8.27 per cent annualised yield instead of 8.06 per cent. 

 

As per the bank’s website, the highest annualised yield can be as much as 10.51 per cent on a 10-year FD, although the 10-year FD rate is 7.25 per cent. So, an investor should consider both the interest rate and the tenure, as they can make a big difference in the overall return. 

  

For a tenure of above 21 months to less than two years, the bank is offering 7.25 per cent; for two years to less than three years, it is 7.55 per cent; and for three years to less than five years, it is 7.10 per cent. Any FD for five years and above will get an interest rate of 7.25 per cent, as per the bank’s revised schedule. 

 

Axis Bank 

 

Axis Bank has revised the rates after a revision on September 18. The highest interest rate for senior citizens is 7.75 per cent for FDs of five to 10 years.  

 

The bank offers 50 basis points (0.50 per cent) more for senior citizens on all FD tenures, but for five years and above FDs, it offers 75 basis points (0.75 per cent) more to seniors than the general public. For the general public, the interest rate is 7.00 per cent for five to 10-year FDs. 

 

For FDs of one year to less than 15 months, seniors can avail of 7.20 per cent, and from 15 months to less than five years, they can get 7.60 per cent. 

Related Articles

Advertisement

Advertisement

Previous Retirement Issues

  • magzine
  • magzine
  • magzine
  • magzine

Group Publications

  • magzine
  • magzine
  • magzine
  • magzine