Axis Bank has reduced the interest rates on Fixed Deposit (FD). Now, on making FD in Axis Bank, general citizens will get interest ranging from 3% to 7.05%. Senior citizens will get interest ranging from 3.50% to 7.65%. These interest rates will be applicable from today i.e. 23 April. After the RBI’s repo rate cut, now banks are also reducing the interest rates on FDs. This change has been made in the interest rates of FDs of less than Rs 3 crore.
axis bank new interest rates
| Duration | Interest Rate (Ordinary Citizens) | Interest Rate (Senior Citizens) |
|---|---|---|
| 7 to 29 days | 3.00% | 3.50% |
| 30 to 45 days | 3.50% | 4.00% |
| 46 to 60 days | 4.25% | 4.75% |
| 61 to 87 days | 4.50% | 5.00% |
| 88 days to 6 months | 4.75% | 5.25% |
| More than 6 months to 9 months | 5.75% | 6.25% |
| More than 9 months but less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.70% | 7.20% |
| 15 months to 2 years | 7.05% | 7.55% |
| 2 years 1 day to 5 years | 6.90% | 7.40% |
| More than 5 years up to 10 years | 6.90% | 7.65% |
Keep these 3 things in mind while making FD
It is important to choose the right tenure
Before investing in FD, it is important to think about its tenure.This is because if investors withdraw before maturity, they will have to pay a penalty. A penalty of up to 1% will have to be paid if the FD is broken before maturity. This may reduce the total interest earned on the deposit.
Do not invest all the money in a single FD
If you are planning to invest Rs 10 lakh in FDs in a single bank, instead invest in 8 FDs of Rs 1 lakh and 4 FDs of Rs 50,000 each in more than one bank. So, if you need money in between, you can arrange for money by breaking the FD as per your requirement. Your remaining FDs will remain safe.
Tax exemption is available on 5 year FD
5-year FD is called tax savings FD. By investing in it, you can claim a deduction of Rs 1.5 lakh from your total income under Section 80C of the Income Tax Act. In simple language, you can reduce your total taxable income by up to Rs 1.5 lakh through Section 80C.
