Axis Bank Vs ICICI Bank After Latest Revision Of Interest Rates On Fixed Deposits

The rise in interest rates by the central banks due to inflation has led to many banks' interest rates on fixed deposits. In the past few weeks, fixed deposit interest rates have seen quite an upside. Many private and public sector banks are increasing their interest rates frequently.

Two leading private sector banks, ICICI and Axis bank, have recently revised their interest rates on fixed deposits. Here is the list of new interest rates of ICICI and Axis bank for retail domestic term deposits below Rs. 2 Crore.

Interest rates on fixed deposits of ICICI Bank

Tenors	General Interest rates (in %)
7 Days to 29 Days	2.75
30 Days to 90 Days	3.25
91 Days to 184 Days	3.75
185 Days to less than 1 year	4.65
1 year to 2 years	5.50
2 years 1 day to 3 years	5.60
3 years 1 day to 5 years	6.10
5 years 1 day to 10 years	5.90

Interest rates on fixed deposits of Axis Bank

Tenors	General Interest rates (in %)
7 Days to 29 Days	2.75
30 Days to less than 3 months	3.25
3 months to less than 6 months	3.75
6 months to less than 7 months	4.65
7 months to less than 8 months	4.40
8 months to less than 9 months	4.65
9 months to less than 1 year	4.75
1 year to less than 1 year 11 days	5.45
1 year 11 days to less than 1 year 25 days	5.75
1 year 25 days to less than 2 years	5.60
2 years to less than 3 years	5.70
3 years < 5 years	5.70
5 years to 10 years	5.75

Why interest rates on fixed deposits are increasing recently?

The main reason behind the increase of the interest rates on fixed deposits is the increase in the repo rate. So, the RBI raises repo rates during an inflationary period to absorb market liquidity and control credit availability. As a result, the banks go to the public to borrow money, and hence little increase in the FD rate is seen in this scenario.