Banks increased FD rates for senior citizens

Axis Bank, and Canara Bank have revised interest rates on fixed deposits for amounts less than   ₹2 crore. This comes after the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5 per cent for the third time in a row. The decision to keep policy interest rate unchanged was announced by RBI Governor Shaktikanta Das on 10 August.  The repo rate is the interest rate at which the RBI lends money to commercial banks. According to the bank's website, the new rates are effective from August 14, 2023. Following the revision, the bank will offer interest rates ranging from 3.5% to 7.3% on deposits maturing in seven days to ten years for the general public. Senior citizens will get an interest rate in the range of 3.50% to 8.05% on these deposits. These rates are for callable term deposits where premature withdrawal is permitted. The rates of fixed deposit schemes were hiked significantly in 2022 after the central bank raised the repo rate by a total of 2.5 per cent in a bid to beat inflation. Since February 2023, the RBI has maintained its repo rate at 6.5 per cent.

Here are the banks which hiked the FD rates this month:

Axis Bank FD schemes

Private lender Axis Bank recently raised its fixed deposit rates for its senior customer, effective from August 14. It is now offering 3.5 per cent to 8.05 per cent interest to senior citizens on deposits maturing in 7 days to 10 years. These interest rates are valid on callable term deposits below Rs 2 crore.The highest rate, 8.05 per cent, is being offered on deposits maturing in 16 months to less than 17 months.

Canara Bank FD schemes

Public lender Canara Bank is offering 4 per cent to 7.75 per cent rate of interest on FD schemes to senior citizens. The rates are effective from August 12.

Federal Bank FD schemes

To mark the 77th Independence Day, Federal Bank announced a hike in interest rates for deposits, which got effective from August 15, 2023. In a statement, Federal Bank said the term deposit rate for a tenure of 13 months would fetch interest rates of 8.07 per cent for senior citizens. The enhanced rates would be available for a limited period only.

Suryoday Small Finance Bank FD schemes

Earlier this month, Suryoday Small Finance Bank hiked its fixed deposit rates for 5-year tenors by 85 basis points (0.85 per cent). The small finance bank is now allowing fixed deposits maturing in 7 days to 10 years at an interest rate of 4.50% to 9.10% to its senior customers.