New Delhi:
Fixed Deposits (FDs) continue to be a favored low-risk investment choice, offering predetermined interest returns over a fixed tenure. Additionally, FDs with a tenure of five years or more can provide tax-saving benefits.
Banks periodically update their FD interest rates, which apply to both new and renewing FDs.
It’s important to note that these new rates do not affect existing FDs, which retain their original terms.
Banks offer Interest Rates Over 7% in 2023
In 2023, bank fixed deposits have become more appealing, with several banks now offering interest rates exceeding 7% to the general public.
The Reserve Bank of India’s (RBI) decision to halt the repo rate increase has also led banks to cease raising FD interest rates.
This change came after six consecutive rate hikes, totaling 250 basis points (2.50%), which took place from May 2022 onwards.
FD Interest Rate updates by Axis Bank, IDBI Bank, and Kotak Mahindra Bank
Here are the latest FD interest rate revisions made by Axis Bank, IDBI Bank, and Kotak Mahindra Bank:
Axis Bank:
Effective from September 18, 2023. Interest rates offered to general citizens range from 3% to 7.10%. Senior citizens can avail interest rates ranging from 3% to 7.75%.
IDBI Bank:
Effective from September 15, 2023. Interest rates for general customers on FDs maturing in seven days to five years range from 3% to 6.8%. FDs maturing in seven days to five years offer senior citizens an interest rate of 7.3%.
Kotak Mahindra Bank:
Interest rates revised in September. General customers can earn interest rates ranging from 2.75% to 7.25% on FDs maturing in seven days to ten years.
Senior citizens enjoy interest rates ranging from 3.25% to 7.75% on these fixed deposits. Effective from September 13, 2023.
These updated interest rates make bank fixed deposits an appealing choice for both general customers and senior citizens looking to grow their savings securely.
