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Tuesday, June 30, 2015

Axis Bank to launch differential interest rate on FDs

Axis Bank, India’s third largest private sector bank, becomes the first private bank to launch differential interest rate on fixed deposits, to give customers a higher rate of return on their fixed deposit investment as compared to regular fixed deposit rates.

“The scheme ‘Fixed Deposit Plus’ is targeted at both Retail customers (Domestic & NRI) and corporate customers who seek safe avenues to invest surplus money at higher rates. The customers need to invest a minimum amount of Rs. 15 lakh at a single instance to enjoy a 10 bps higher rate of interest on their investment,” Axis Bank said in a statement.

The differential rates on Fixed Deposit Plus with a lock in are currently available for a minimum period of 1 year and a maximum period of less than 2 years. No premature withdrawal will be allowed prior to maturity date, it said.

In April this year, RBI had allowed banks to offer differential interest rates, based on whether their term deposits are with or without a premature withdrawal facility.

Rajiv Anand, Group Executive and Head Retail Banking said, “With the increasing number of customers seeking safer investment options, we are confident that the new ‘Fixed Deposit Plus’ scheme will offer higher earning potential, while continuing to promise guaranteed returns.

Fixed Deposit Plus is the first product launched by any private bank in the country after the recent RBI announcement that allow banks the discretion to offer differential interest rates based on whether the term deposits are with or without-premature-withdrawal-facility, Axis bank statement said.

Source : Thehindubusinessline


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