Axis Bank has hiked fixed deposit (FD) interest rates on tenures below 6 months for amounts less than Rs 2 crore, with effect from September 9, 2022.

For maturities ranging from 7 days to 6 months, the bank has increased interest rates on fixed deposits by 25 basis points.

According to the Axis Bank website, the bank increased the interest rate on fixed deposits maturing in 7 days to 29 days by 25 basis points (bps), from 2.50% to 2.75%. The interest rate on fixed deposits maturing in 30 days to 3 months by 25 bps to 3.25%. Fixed deposits that mature in 3 to 6 months will now earn an interest rate of 3.75%, up from 3.50% previously.

Interest rates on other tenures have not been changed.

Factors that affect FD interest rates

According to the Axis Bank website, these are the factors that affect FD 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.