Just a few days after the largest lender State Bank of India (SBI) increased interest rate for a list of domestic term deposits, private lender Axis Bank has also followed suit. Axis Bank has increased interest rates of fixed deposits for not just the general public and senior citizen but also for NRIs. A term deposit means a cash investment by a customer at banks and other financial institutions. This cash is usually invested at an agreed rate of interest rate over a fixed tenure. Axis Bank has increased rates for deposits less than Rs 5 crore to as much as Rs 100 crore and above.
Here’s what you will receive for your deposits at Axis Bank.
A customer will receive 7.10% interest rate for deposits below Rs 1 crore in a tenure 1 year and above. As for deposits from Rs 1 crore to below Rs 5 crore, one will earn 7.30% interest rate for the same tenure.
As for deposits made below Rs 1 crore for tenure 2 years less than 30 months, a customer will get 7% interest rate, and for deposits made between Rs 1 crore to below Rs 5 crore for same tenure will get 7.25% interest rate.
For 3 years to less than 5 years and 5 years to 10 years tenure, a customer will get 7% interest rate each for deposits made below Rs 1 crore and from Rs 1 crore to below Rs 5 crore.
This category is supposed to benefit more from the deposits interest rate hike.
For 1 year deposits, a senior citizen would get 7.75% and 7.95% interest rate for deposits made below Rs 1 crore and Rs 1 crore to below Rs 5 crore respectively.
In case of 2 years but less than 30 months, a customer will interest rate of 7.50% for deposits below Rs 1 crore, however will receive 7.75% interest rate for deposits from Rs 1 crore below Rs 5 crore.