With effect from May 28 the fixed deposit rates hae been hiked by State Bank of India (SBI) and Axis Bank by 25bps if the deposits are below Rs 1 crore.
The hiked rates are for deposits for 1 year to less than 2 years and for those who are parking their money under the Fixed Deposit scheme for 2 years to less than three years.
The benefits of new move are also enjoyed by senior citizens.
Meanwhile, SBI has also introduced a newly fixed deposit tenure – ’12 months 5 says to under 12 months 11 days.’
There aer two categories of FDs offered by the two mentioned banks and Post Office. One is for general public and the other for senior citizens. For the tenure of ‘7 days to 45 days’ the interest rate is 5.75 percent. It is increased to 6.25 percent for deposit tenure between ‘180 days to 210 days.’ For longer tenure between ‘211 days to less than 1 year’ the rate is 6.40 percent and it is 6.65 percent for a tenure of ‘1 year to less than 2 years.’ The highest bracket is 7.2 and 7.25 percent for tenures of ‘3 years to less than 5 years’ and ‘5 years and up to 10 years’ respectively.
Axis Bank offers minimum investment of Rs 5,000 online or of Rs 10,000 through branch offices with a period of six months and above. It calculates interest rate on a quarterly basis.
The Indian Post Office welcones FDs at minimum Rs 200 and there is no maximum amount of money cap. For a tenure of one year the interest rate is 6.60 percent. It is increased to 6.7 percent for a two-year tenure. In the three and five years brackets the interest is increased to 6.90 and 7.40 respectively.
