Fixed deposits: Union Bank of India and Axis Bank revise interest rates

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Fixed Deposit (FD) is one of the most conventional ways of parking one’s money. Despite falling interest rates it is a preferred option for many Indians since they consider it as a safe avenue. It offers fixed returns based on a predetermined tenure. All major private and public sector banks in the country offer FD tenures ranging from 7 days to 10 years. FD interest rates of different banks vary by deposit amount, deposit tenure and type of depositor. Within the past nine days at least two major commercial banks – Union Bank of India (UBI) and Axis Bank have revised FD rates. If you are planning to invest in fixed deposits, it’s always better to know the recent changes.

Axis Bank latest rates

Axis Bank, one of the leading private sector banks of the country, has recently revised interest rates on its fixed deposits. The bank has a minimum deposit amount of Rs 5,000. Now it is offering 2.50% to 5.75% interest rate of term deposit below Rs 2 crore for tenures between 7 days and 10 years for the general public. These rates are effective from September 9, 2021.

Take a look at the tenure-wise interest rates for general public:

— 07 days to 14 days; 15 days to 29 days: 2.50%

— 30 days to 45 days; 46 days to 60 days; 61 days to < 03 months: 3.00%

— 3 months to < 4 months; 4 months to < 5 months; 5 months to < 6 months: 3.50%

— 6 months to < 7 months; 7 months to < 8 months; 8 months to < 9 months; 9 months to < 10 months; 10 months to < 11 months; 11 months to < 11 months 25 days; 11 months 25 days to < 1 year: 4.40%

— 1 year to < 1 year 5 days; 1 year 11 days to < 1 year 25 days; 1 year 25 days to < 13 months; 13 months to < 14 months; 14 months to < 15 months; 15 months to < 16 months; 16 months to < 17 months; 17 months to < 18 months: 5.10%

— 1 year 5 days to < 1 year 11 days: 5.15%

— 18 months to < 2 years: 5.25%

— 2 years to < 30 months; 30 months to < 3 years; 3 years to < 5 years: 5.40%

— 5 years to 10 years: 5.75%

Senior citizens who hold domestic fixed deposit accounts can enjoy interest rates of minimum 2.50% to maximum 6.50%.

Union Bank of India latest rates

Union Bank of India (UBI), one of the largest public sector banks of our country, has also revised interest rates on its domestic term deposit schemes. One can open an FD account in UBI with a minimum deposit amount of Rs 1,000. After the most recent revision, the bank is now offering an interest rate ranging from 3.00% to 5.50% to the general public for tenures of 7 days to 10 days.

Take a look at the tenure-wise interest rates for general public:

— 07 to 14 days; 15 to 30 days; 31 to 45 days: 3.00%

— 46 to 90 days: 3.50%

— 91 to 120 days: 3.75%

— 121 to 180 days: 4.30%

— 181 Days to less than 1 year: 4.40%

— 1 year: 5.00%

More than 1 year to 2 years: 5.10%

More than 2 years to 3 years: 5.30%

More than 3 years to 5 years: 5.40%

More than 5 years to 10 years: 5.50%

Senior citizens will continue to get an additional card rate of 50 basis point or 0.50% on their deposits.

SBI and HDFC Bank 

FD in State Bank of India (SBI) between 7 days to 10 years will give 2.9% to 5.4% interest to general customers. It offers up to 80 bps or 0.80 percentage point extra interest rates ranging from 3.40% to 6.20% on FDs to senior citizens.

HDFC Bank, the largest private sector bank in the country, offers interest ranging from 2.50% to 5.50% on deposits maturing between 7 days and 10 years. Senior citizens will get up to 75 bps extra interest rates ranging from 3% to 6.25% on FDs maturing in 7 days to 10 years.