By With the recent review maintaining an unchanged repo rate, banks are adjusting interest rates under unfavorable conditions. In February 2024, prominent banks like Axis Bank, HDFC Bank, IndusInd Bank, and Karnataka Bank have implemented substantial revisions in their fixed deposit interest rates, striving to offer competitive returns to their customers. The interest rates remain fixed from the initiation of the FD account.
Despite the efforts of individuals to explore various investment instruments for enhanced returns, fixed deposits, in particular, have taken the lead. Over the past two years, the RBI’s measures have led to a significant rise in FD interest rates. However, over the last four quarters, with the repo rate remaining constant in RBI reviews, the upward trend in interest rates has experienced a halt. As the repo rate remains unchanged in the recent review, banks are now adjusting interest rates in inappropriate circumstances. Details on which banks have revised interest rates and by how much in this month are worth exploring.
AXIS BANK Fixed Deposit interest rate
As of February 5, 2024, Axis Bank has implemented adjustments to its fixed deposit interest rates, as indicated on the website. These modified rates apply to FDs valued at less than 2 crores. Customers with fixed deposits can now access an increased interest rate, with the highest reaching 7.20 percent. Notably, senior citizens are eligible for even higher rates, reaching up to 7.75 percent on Axis Bank FDs. Additionally, Axis Bank has raised the fixed deposit interest rate by 10 basis points (bps) for FDs spanning 17 to 18 months for the general populace, elevating it from 7.10 percent to 7.20 percent. For senior citizens, the rate has been elevated from 7.75 percent to 7.85 percent.
HDFC BANK Fixed Deposit interest rate
As per the information accessible on the HDFC Bank website, the bank has established its bulk fixed deposit interest rates, with revised rates applicable for domestic NRO and NRE customers holding amounts between Rs 2 crore and Rs 5 crore. These updated rates have been in effect since February 3, 2024. HDFC Bank provides interest rates ranging from 4.75 percent to 7.40 percent for general citizens on bulk deposits. However, senior citizens are entitled to varied interest rates falling within the range of 5.25 percent to 7.90 percent. The highest interest rates, spanning from 7.40 percent to 7.90 percent, are applicable for tenures lasting less than 1 year to 15 months.
INDUSLND BANK Fixed Deposit interest rate
As per the information on the official website of IndusInd Bank, the bank has adjusted the interest rates for fixed deposits below Rs 2 crore. These revised rates became effective from February 6, 2024. IndusInd Bank extends interest rates varying between 3.50 percent and 7.75 percent for general citizens. Concurrently, senior citizens can avail interest rates ranging from 4 percent to 8.25 percent across tenures spanning from 7 days to 10 years. The highest interest rate, reaching 8.25 percent, is applicable for tenures ranging from 1 year to 2 years. Additionally, senior citizens will receive an extra interest of up to 0.50 percent on term deposits for amounts below Rs.2 crore.
KARNATAKA BANK
As per the details available on the official website of Karnataka Bank, the bank has revised the interest rates for fixed deposits below Rs 2 crore, which will be applicable starting February 1, 2024. Karnataka Bank provides interest rates varying from 3.50 percent to 7.40 percent across different tenures, spanning from 7 days to 10 years, for deposits up to Rs. 2 crore.
