Fixed deposit rates: The Reserve Bank had been steadily increasing interest rates for a while, resulting in a corresponding rise in loan interest and bank scheme returns. Notably, fixed deposit rates experienced a substantial surge. However, certain banks have now begun reducing their fixed deposit interest rates, signaling a change in the trend.
Let’s take a look at the banks that have implemented rate cuts. Among them are Punjab National Bank, Axis Bank, and Union Bank of India.
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Axis Bank’s revised FD rates: Axis Bank has recently decreased the interest rate on its single-tenure fixed deposits by 20 basis points. Following this update, interest rates on fixed deposits now range from 3.5% to 7.10%, depending on the tenure, spanning from 7 days to 10 years. Furthermore, for tenures less than five days up to 13 months, the interest rate has been reduced from 7.10% to 6.80%. Moreover, for tenures between 13 months and less than 3 years, the interest rate has been adjusted from 7.15% to 7.10%. This change came into effect on May 18, 2023.
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Punjab National Bank’s revised FD rates: Effective from June 1, PNB has decreased the interest rate on single tenures of fixed deposits, specifically those less than 2 crores. Consequently, the interest rate on a 1-year tenure fixed deposit for regular citizens has reduced by 0.05%, now standing at 6.75%. Similarly, for a tenure of 666 days, the interest rate has decreased from 7.25% to 7.05%.
Union Bank of India’s revised rates: In November 2022, Union Bank of India was offering the highest interest rates, with 7.30% for the General Public, 7.80% for Senior Citizens, and 8.05% for Super Seniors. Presently, as stated on the bank’s website, Union Bank offers 7% interest for regular citizens, 7.50% for senior citizens, and 7.75% for super senior citizens.
If you plan to invest in fixed deposit schemes within these banks and for the specified tenures, your interest earnings will be lower compared to previous rates. However, if you choose any other tenure outside of those mentioned, your interest will continue to be calculated based on the previous interest rates.
