Axis Bank Slashes Short-Term Fixed Deposit Rates (Check Rates)

Axis Bank recently reduced its short-term fixed deposit (FD) interest rates by a significant 0.50 percent.

These new rates, effective from September 15, come just a month after the bank had raised its FD rates by 0.15 percent.

Existing FDs remain unaffected, but if you’re considering a new FD, be prepared for lower interest rates.

Interest Rates Now 3-7.10 percent

Following this rate cut, Axis Bank’s FD interest rates for periods ranging from 7 days to 10 years now range from 3 percent to 7.10 percent.

If you’re making an FD online, the minimum deposit required is Rs 5000, while in-branch FDs necessitate a minimum deposit of Rs 10,000.

Current Axis Bank FD Rates

  1. 7 to 29 days: 3 percent
  2. 30 to 45 days: 3.5 percent
  3. 46 to 60 days: 4.25 percent
  4. 61 days to 3 months: 4.5 percent
  5. 3 months to 6 months: 4.75 percent
  6. 6 months to 9 months: 5.75 percent
  7. 9 months to less than 1 year: 6 percent
  8. 1 year to less than 15 months: 6.70 percent
  9. 15 months to less than 5 years: 7.10 percent
  10. 5 years to 10 years: 7 percent

5 Advantages of Investing in FDs

Fixed Deposits (FDs) in banks offer a secure investment option with a fixed interest rate for terms ranging from 7 days to 10 years. Here are five key benefits:

Emergency Withdrawals: You can withdraw funds from your FD in case of emergencies, albeit with some associated charges (usually up to 1 percent). This flexibility makes it a liquid investment.

Loans Against FD: FDs can be used as collateral for loans. You can obtain a loan against your FD without breaking it, typically up to 90 percent of the FD’s value, with slightly higher interest rates compared to the FD itself.

Stable Interest: FDs provide a guaranteed fixed interest rate throughout the term, unaffected by market fluctuations.

However, this also means you won’t benefit if interest rates rise during your FD’s tenure.

Variety of Options: FDs offer flexibility in terms of deposit amount and duration, with periods ranging from 7 days to 10 years.

Some banks, like SBI, allow FDs with a minimum of Rs 1000, and there’s usually no maximum limit.

Risk-Free Investment: FDs are among the safest investment options in India, as banks are regulated by the RBI. They offer greater security compared to other deposit options.

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