Axis Bank Increases FD Interest: Now Earn 7.10% p.a.
Axis Bank has increased interest on Fixed Deposits (FD). Bank Rs. Revised interest rates on FDs below Rs 2 crore. According to Axis Bank’s official website, the new interest rates are effective from 11 August 2023.
3.50% to 7.10% Interest
Now you will get 3.50% to 7.10% interest on Axis Bank FD. Now you will get 6.75% annual interest on FD for 1 year with Axis Bank.
New FD Interest Rates in Axis Bank
| Duration | Interest rate |
| 7 to 45 days | 3.50% |
| 46 to 60 days | 4.00% |
| 61 days to 3 months | 4.50% |
| 3 months to 6 months | 4.75% |
| 6 months to 9 months | 5.75% |
| 9 months to less than 1 year | 6.00% |
| 1 year to 1 year 4 days | 6.75% |
| 1 year 5 days to 13 months | 6.80% |
| 13 months to less than 2 years | 7.10% |
| Less than 2 years 30 months | 7.20% |
| 30 months to 10 years | 7.00% |
Opportunity to invest in SBI Amrit-Kalash scheme till August 15
State Bank of India’s (SBI) special fixed deposit (FD) scheme Amrit Kalash is ending on August 15 this month. Under this scheme senior citizens are given 7.60% interest on FD and others 7.10%.
One has to invest in this fixed deposit scheme for 400 days. In such a situation, if you want more interest on FD, you can invest in this scheme. We are telling you about it.
Interest Earned From Fd is Also Taxable
Interest earned from FD is fully taxable. Whatever interest you earn on FD in a year, gets added to your annual income. Your tax slab is determined based on your total income. Since interest income earned on FD is considered as “income from other sources”, it is charged under tax deduction at source or TDS. TDS is deducted when your bank deposits your interest income into your account.
Let Us Know Some Tax Related Issues on FD
- If your total income in a year is Rs. Banks do not deduct TDS on fixed deposits if they are less than 2.5 lakhs. However, for this you have to submit Form 15G or 15H. In such a situation, if you want to save TDS, definitely submit Form 15G or 15H.
- If the interest income from all your FDs in a year is Rs. TDS is not deducted if less than 40,000. On the other hand, if your interest income is more than Rs 40,000 then 10% TDS will be deducted. Bank may deduct 20% for not providing PAN card.
- This limit for deducting TDS on interest income above Rs 40,000 is for people below 60 years of age. At the same time, income up to Rs 50,000 from FD of senior citizens above 60 years is tax free. If the income is more than this then 10% TDS is deducted.
- If the bank has deducted TDS on your FD interest income and your total income is not subject to income tax, you can claim the TDS deducted while filing tax. This will be credited to your account.
