Two major banks revise FD rates; check details

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Despite crashing interest rates, fixed deposits (FD) remain one of the most-preferred ways in which common people park their savings. Many consider it a safe instrument that offers guaranteed returns. In the past seven days two major public and private sector banks, including Canara Bank revised fixed deposit interest rates. Just a few days earlier, Punjab National Bank (PNB), Bank of India (BOI) and Yes Bank also revised fixed deposit interest rates.

Canara Bank

Canara Bank, one of the major public sector banks, has recently revised interest rates on fixed deposits.

After the latest revision, it offers rates between 2.90% and 5.35% interest rate of term deposit below Rs 2 crore for tenures between 7 days and 10 years for the general public.

The interest rates applicable on 1-year, 3-under-5-year and 5-10-year FDs are 5.1%, 5.25% and 5.25%. An FD with a tenure of 1,111 days is offering a maximum rate of 5.35% for non-senior citizens.

The new rates came into effect from August 8, 2021.

For senior citizens

Canara Bank offers an additional interest rate of 50 basis or 0.50 percentage point more than general customers on FDs only for 180 days to 10 years tenure for senior citizens. After the recent revision, Canara Bank is now offering the minimum rate of 2.90% to a maximum rate of 5.75% to senior citizens for tenures ranging from 7 days to 10 years.

Axis Bank

Axis Bank, too, revised interest rates on fixed deposits (FDs) across different tenures, ranging from 7 days to 10 years.

After the latest revision on deposits less than Rs 2 crores, this private sector lender is offering minimum 2.50% to maximum 5.75% interest rate to the general public.

Axis Bank has as many as 29 tenure slabs.

The interest rates on 1-year to 1-year-4-days is 5.10%. The rate between 24 months and 30 months is 5.50% and 3-less-than-5-year FDs carry 5.40%. Those between 5-year-to-10-years offer 5.75% interest rates for the non-senior citizens.

The new rates on term deposits were applicable from August 14, 2021.

Axis Bank for senior citizens

The rates of interest applicable to senior citizens are, however, a bit higher. It ranges from a low of 2.5% to 6.50% on deposits maturing in 7 days to 10 years.

Other banks

According to latest data, all other major public players offer interest rates up to 5.6%. Union Bank of India (UBI) is at the top of the list. It offers a maximum rate of 5.60% to the general public.

Canara Bank in the second position with 5.25% interest. State Bank of India (SBI) now offers up to 5.40% interest to the general public on FDs. Senior citizens will get additional interest than the general public.

RBI policy rates

Announcing latest monetary policy on August 6, Reserve Bank of India kept the repo rate and reverse repo rate unchanged for the seventh successive time. While the repo rate stood at 4, the reverse repo was 3.35%.