2 min read.Updated: 19 Jun 2019, 08:43 AM ISTLivemint
Axis Bank has lowered the FD interest rates applicable on the maturity periods of two years to less than three years
HDFC Bank also seems to have done a review of its deposit rates
Private sector lender Axis Bank has revised fixed deposit (FD) interest rates on select maturities with effect from 15 June 2019. Axis Bank has lowered the FD interest rates applicable on the maturity periods of two years to less than three years, according to the bank's website, axisbank.com. The bank is offering an interest rate of 7.3% now. Previously, the bank paid an interest rate of 7.5% to general public on fixed deposits below ₹2 crore for maturity periods between 2 years to less than 3 years. This comes after SBI and ICICI Bank cut its deposit rates in select buckets. The move by lenders including ICICI Bank and Axis Bank come within days of a rate cut by the Reserve Bank of India (RBI) earlier this month.
Axis Bank is offering an interest rate of 6.25% on FDs with maturity between 7 days and 6 months, 6.75% for FDs maturing between 6 and 9 months and 7.1% for between 9 months and 1 year. Axis Bank is offering 7.3% for fixed deposits maturing in one and two years. The bank is now offering 7.3% for FDs maturing in 2 years but not more than 3 years and 7.25% interest rate on FDs maturing between three and less than five years. For FDs with maturity between five years and 10 years, Axis Bank offers an interest rate of 7%.
Largest private sector lender HDFC Bank also seems to have done a review of its deposit rates and the revised rates are applicable from 12 June 2019, according to the lender's website. The bank offers fixed deposit maturities ranging from seven days to 10 years. It offers interest rates in the range of 3.5% to 7.5% for the general public. The bank will be paying an interest of 7.30% for deposits of under ₹2 crore for a year, according to its website. For FDs with maturity 7-90 days, HDFC is offering 6.25%, 91 days to 1 year 7.30%. HDFC Bank is offering 7.4 % interest rate on FD maturing in 2-3 years. HDFC Bank is offering 7.25% interest rate on FDs maturing between three and five years. The bank offers interest rate of 6.5% on FDs with maturity between five years and 10 years.
ICICI Bank has also cut its fixed deposit rates by 0.10-0.25% with effect from 17 June 2019. Under the revised rates for domestic deposits under ₹2 crore, the bank will be paying 6.75% for a deposit of 290 days to under a year, and 7.30% for a deposit of over two years to under three years, according to the rates on the bank's website.
State Bank of India (SBI) also tweaked interest rate on some select maturities, with effect from 9 May 2019. On deposits which are 1 year to less than 2 year, the rate of interest has been increased from 6.8% to 7%, according to the SBI website. But across many other maturities SBI has lowered interest rates.
After announcing a rate cut at its last policy move, Reserve Bank of India (RBI) Governor Shaktikanta Das had appreciated banks' response on passing on the RBI's rate calls, called as 'transmission'. He had, however, said that more needs to be done by the banks.
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