Axis Bank has announced a cut in interest rates on its Fixed Deposit (FD) schemes, affecting new investors by reducing their returns. However, interest rates for some tenures have been increased as well. The revised rates are effective from today.
Specific Rate Adjustments
According to the official announcement, Axis Bank now offers an interest rate of 3% on FDs maturing in 7 to 45 days and 4.25% on FDs maturing in 46 to 60 days. For other tenures, the interest rate ranges from 4.50% to 7.10%.
Winners and Losers in the New Scheme
Investors with FDs maturing in 46 to 60 days will benefit from a 25 basis points (bps) increase, from 4% to 4.25%. However, rates have been slashed for various other tenures. For instance, interest rates have been cut by 50 bps for FDs maturing in 7 to 29 days, dropping from 3.50% to 3%.
Why the Change?
Axis Bank cited adjustments for FDs with an investment amount less than 2 Crore INR, slashing the interest rate by up to 50 bps on select tenures.
The Impact on New Investors
New investors will be hit the hardest, especially those who are looking for shorter-term FDs. The bank has clearly shifted its focus towards attracting investments for longer tenures.
|Tenure||Previous Interest Rate||Revised Interest Rate|
|1 yr 5 days – 15 months||6.80%||6.70%|
With these changes, it’s essential for investors to reconsider their investment strategies and possibly look for other avenues to maximize their returns.