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