Axis Bank hikes FD interest rates: Senior citizen can earn up to 8.01% on this tenor

Axis Bank has increased fixed deposit (FD) interest rates for amounts less than Rs 2 crore on select tenors. The new rates are effective from January 10, 2023.

Axis Bank latest FD interest rates
After the latest hike, fixed deposit interest rates for maturities between 1 year 25 days to less than 13 months have increased to 7.10%.
Deposit maturing in 2 years to less than 30 months will now earn an interest rate of 7.26% for regular citizens.

Senior Citizen FD rates
Axis Bank offers higher interest rates for senior citizens – it offers interest rates between 3.50% and 8.01% for tenures ranging from 7 days to 10 years

Source: Bank website

The minimum deposit needed to start an FD account at Axis Bank is Rs 5000 if done online or through a mobile app, and Rs 10,000 if done in person at a bank branch.
Factors that affect FD interest rates

According to the Axis Bank website, here are the factors that affect fixed deposit interest rates.

• Tenure: FDs of lower tenure offer lower rates while FDs of higher tenure offer higher rates. If you are looking to earn higher returns and do not foresee any immediate need for funds, lock into the highest possible tenure
• Depositor’s age: Senior citizens i.e. those above 60 years of age usually get a higher interest rate than regular depositors
• Deposit Amount: Some FDs offer higher interest for higher amounts, such as Fixed Deposit Plus, thereby ensuring secured and higher returns.

Axis Bank overdraft on FD
Without breaking the FD, you are allowed for an overdraft facility that is secured by your FD. For as long as the FD is still in effect or has remaining duration, the overdraft facility is available.
According to the Axis Bank FAQ, “ This feature can help you meet your need for funds, while you continue to earn interest on your FD. The overdraft amount is usually a fixed percentage of your FD amount. In the case of Axis Bank, it is 85% of the FD amount, with a minimum of Rs 25,000. Since it is a secured loan, the interest rates are competitive and the approval and sanction process is quick. The other advantage is that interest is charged only on the amount that is utilised and not on the entire loan amount.”