Punjab National Bank, Axis Bank reduces FD interest rate on this tenure

Following the RBI order, banks have been instructed to withdraw Rs 2000 notes. According to the report, demonetisation of Rs 2000 notes will end liquidity problems of banks.

This will directly affect the interest earned by the customer on FD. That means banks will reduce interest rates on FDs in future. RBI has increased the repo rate by 2.5 percent in the last year alone.

Banks had hiked interest on FDs and other savings schemes following the hike in repo rates. However, banks have not increased FD rates in the last few months. Not only this, some banks have reduced the interest rates offered to their customers on FDs.

Punjab National Bank has revised the interest rate on FDs below Rs 2 crore. According to the bank's website, the new rates will be effective from June 1, 2023.

The bank has increased the interest rate on one-year deposits from 6.80 percent to 6.75 percent. Recently, interest on FDs maturing in 666 days has been reduced from 7.25 per cent to 7.05 per cent.

For senior citizens, the one-year FD interest rate has been reduced from 7.30 percent to 7.25 percent. Similarly, FDs maturing in 666 days will get 7.55 percent interest instead of 7.75 percent.

Axis Bank has reduced interest rates on select FDs by 20 basis points. FD interest rates are effective from 18 May 2023.

According to the bank's website, the bank is offering 6.80 percent interest instead of 7.10 percent for schemes from 1 year 5 days to less than 13 months. The bank is getting 7.10 percent interest instead of 7.15 percent on 13 months to 2 years FD.