All banks, irrespective of whether they are in the public sector or private, sell Fixed Deposits (FD) aggressively in order to mop up capital for onward lending to the retail and corporate segments, which is the bread and butter of any bank.
Axis Bank has 30 tenure baskets of FDs while Kotak Bank has 20. The interest rates that Axis Bank offers to general customers range from a low of 3% to a maximum of 7.25% while, for senior citizens, the rate varies from a low of 3.5% to a high of 7.75% for senior citizens. These rates are applicable for deposits of less than Rs 3 crore. Kotak Mahindra Bank, on the other hand, offers rates that vary between 2.75% and 7.4% for non-senior citizens while it varies between 3.25% and 7.9% for senior citizens.
Fixed Deposit for 1 and 2 years
In many banks FDs of 1 year and 2 years are very popular. Axis Bank gives an interest rate of 6.70% to non-senior citizens and 7.20% for senior citizens on fixed deposits of 1 year maturity period. The interest rate given by Kotak Mahindra Bank for the same tenure is 7.1% for non-senior citizens and 7.6% for those above 60 years.
In case of FDs with tenure of 2 years in Axis Bank pays an interest rate of 7.1% for non-senior and 7.6% and those above 60 years. The rates offered by Kotak Bank are 7.15% for those aged below 60 years and 7.65% for those aged above 60 years.
Fixed Deposit for 3, 5 years
For FDs of 3 years, Axis Bank pays an interest of 7.1% to non-senior customers while, for senior citizen customers, the interest rate rises by 50 basis points to 7.6%. The rates of interest paid by Kotak Bank are 7% and 7.6% respectively to those aged below 60 and those above it.
For 5-year FDs, Axis Bank has 7% and 7.75% on offer for general and senior citizens. Those offered by Kotak Bank are 6.2% and 6.7% to the two age brackets respectively.
Axis Bank and Kotak Mahindra Bank are two of the most prominent banks in the private sector that have millions of common people as customers. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
