Bank Fixed Deposit (FD) rates have recently experienced upward shifts despite the Reserve Bank of India (RBI) maintaining a steady repo rate. This development has proven advantageous for potential investors, especially senior citizens. While the prevailing economic climate has not prompted the RBI to alter its key rate, several banks have independently chosen to raise their FD interest rates.
Recent Upward Shift in Bank FD Rates
Axis Bank, a prominent private sector bank, has revised its FD interest rates upwards, effective from August 14. This revision encompasses FDs ranging from 7 days to 10 years, offering customers interest rates spanning 3.5% to 8.05%.
Canara Bank, a notable public sector bank, has introduced new interest rates for its FD scheme for senior citizens. As of August 12, these rates range from 4% to 7.75%.
Advantages for Potential Investors and Senior Citizens
Federal Bank seized the occasion of Independence Day to announce enhanced FD interest rates for deposits, impacting 13-month FDs. Commencing from August 15, the bank now extends interest rates of up to 8.07% to senior citizens.
Suryoday Small Finance Bank, in early August, amplified its FD rates by 85 basis points for 5-year tenures. The updated rates, valid for FDs spanning 7 days to 10 years, offer senior citizens an interest range of 4.50% to 9.10%.
Axis Bank’s Revised FD Interest Rates: August 14 Onwards
This trend of rising FD rates amid stable repo rates highlights a favorable environment for potential investors. It is recommended that individuals, including senior citizens, evaluate these revised FD rates and seize the potential investment opportunity presented by these attractive returns.
