axis Bank has increased Fixed deposit (FD) Rate of interest With effect from September 9, 2022, on tenure of less than 6 months for an amount less than Rs.2 crore.

The bank has increased the interest rates on fixed deposits by 25 basis points for maturities ranging from 7 days to 6 months.

According to the Axis Bank website, the bank increased the interest rate on fixed deposits maturing in 7 days by 25 basis points (bps) to 29 days from 2.50% to 2.75%. The interest rate on fixed deposits maturing in 30 days to 3 months went up by 25 bps to 3.25%. Fixed deposits maturing in 3 to 6 months will now attract an interest rate of 3.75%, which was 3.50% earlier.

Interest rates on other tenors have not been changed.

factors influencing FD Interest Rates

According to the Axis Bank website, these are the factors that affect FD interest rates:

• Tenure: Short tenure FDs offer lower rates whereas higher tenure FDs offer higher rates. If you want to earn higher returns and you do not anticipate an immediate need for funds, lock in the highest possible tenure
• Age of Depositor: Senior citizens i.e. those above 60 years of age usually get higher rate of interest than regular depositors
• Deposit amount: Some FDs offer higher interest rates for higher amounts, such as Fixed Deposit Plus, thereby ensuring safe and high returns.