The interest rates on a fixed deposit (FD) remain constant from the time the FD account is initiated, unlike market-driven investments where returns fluctuate over time.
New Delhi: In February 2024, major banks including Axis Bank, HDFC Bank, IndusInd Bank, and Karnataka Bank made significant revisions to their fixed deposit interest rates, aiming to offer competitive returns to their customers. The interest rates on a fixed deposit (FD) remain constant from the time the FD account is initiated, unlike market-driven investments where returns fluctuate over time.
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Axis Bank
According to information from Axis Bank‘s website, the bank has adjusted its fixed deposit (FD) interest rates effective from February 5, 2024. These revised rates apply to FDs valued at less than Rs 2 crore. Individuals can now enjoy the highest interest rate of up to 7.20%, while senior citizens can benefit from rates of up to 7.75% on Axis Bank FDs.
Moreover, Axis Bank has raised the fixed deposit interest rate for FDs spanning 17 to less than 18 months by 10 basis points (bps), increasing it from 7.10% to 7.20% for general citizens. For senior citizens, the bank has elevated the rate from 7.75% to 7.85%.
HDFC Bank
As per information available on the HDFC Bank website, the bank has updated its bulk fixed deposit interest rates for amounts ranging from above Rs. 2 crore to Rs. 5 crore for domestic, NRO, and NRE customers. These revised rates came into effect from February 3, 2024.
HDFC Bank is offering interest rates ranging from 4.75% to 7.40% for general citizens on bulk deposits, while for senior citizens, the rates vary between 5.25% to 7.90%. The highest interest rates of 7.40% and 7.90% are applicable for a tenure of 1 Year to less than 15 months.
IndusInd Bank
As per the official website of IndusInd Bank, the bank has adjusted the interest rates on fixed deposits valued under Rs. 2 crore. These updated rates became effective on February 6, 2024. For general citizens, IndusInd Bank offers interest rates ranging from 3.50% to 7.75%. Meanwhile, senior citizens can benefit from interest rates ranging from 4% to 8.25% across various tenures spanning from 7 days to 10 years.
The highest interest rate of 8.25% is applicable for tenures ranging from 1 year to 2 years. It’s important for senior citizens to note that an additional 0.50% over and above card rates applies to term deposits of senior citizens for amounts less than Rs. 2 crore (Callable).
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Karnataka Bank
According to information provided on Karnataka Bank’s official website, the bank has updated the interest rates on fixed deposits valued under Rs. 2 crore, effective from February 1, 2024. For deposits below Rs. 1 crore, Karnataka Bank offers interest rates ranging from 3.50% to 7.40% across various tenures spanning from 7 days to 10 years.
Resident senior citizens can avail an additional interest rate of 0.40% above the general rate for deposits up to and including Rs. 5 crore under Domestic FD and ACC Schemes, as per information provided on the Karnataka Bank.
This benefit is applicable for tenures ranging from 1 to 5 years, and an extra 0.50% interest rate is offered for tenures spanning from 5 to 10 years, effective from November 9, 2020. However, the interest rate benefit for senior citizens on term deposits below 1 year has been discontinued starting from June 6, 2019.
