Fixed Deposits (FDs) are a popular investment option for people seeking a low-risk, stable investment instrument. For a set tenure, FDs give a fixed interest rate on investments. Furthermore, a few FDs with 5-year or longer terms also have tax-saving features. FD interest rates are updated by banks on a regular basis. Renewals and new deposits are subject to the revised interest rates while existing deposits continue to earn interest at the contracted rate.
Bank Fixed Deposits have become more appealing in 2023, with numerous banks now giving general clients interest rates of more than 7 per cent. Banks have paused their hikes in Fixed Deposits rates since the Reserve Bank of India (RBI) chose to pause repo rate hikes. In addition, the central bank suspended the rate hike cycle in April this year after six consecutive rate hikes totalling 250 basis points (bps) since May 2022.
Amidst all this, Axis Bank, IDBI Bank and Kotak Mahindra Bank all have revised their term deposit rates in September 2023.
Check the details on each bank below:
Axis Bank:
The interest rates on Axis Bank’s term deposits have been changed. According to the bank’s official website, these interest rates have come into effect beginning September 18. Axis Bank provides interest rates ranging from 3 per cent to 7.10 per cent to general citizens and from 3 per cent to 7.75 per cent to the senior citizen.
IDBI Bank:
The interest rates on IDBI Bank’s term deposits have also been changed. As per the bank’s official portal, these rates have been effective from September 15. The website states that IDBI Bank offers general consumers interest rates ranging from 3 per cent to 6.8 per cent on Fixed Deposits maturing in seven days to five years, and 3.5 per cent to 7.3 per cent on Fixed Deposits that are maturing in seven days to five years.
Kotak Mahindra Bank:
Kotak Mahindra Bank has raised the interest rate on FD in September. Following the most recent change, Kotak Mahindra Bank is now offering an interest rate of 2.75 percent to 7.25 per cent for general clients on deposits maturing in seven days to ten years. Whereas senior citizen will earn interest rates ranging from 3.25 per cent to 7.75 per cent on these Fixed Deposits. Furthermore, these rates have come into effect from September 13.
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