Federal Bank increased interest rates on fixed deposits (FD) under Rs 2 crore from September 27, 2022. 

Now, the bank is offering interest rates on FDs with maturities ranging from 7 days to 10 years that range from 3.00 per cent to 6.00 per cent for the general public and 3.50 per cent to 6.65 per cent for senior citizens. Now banks have offered a maximum interest rate of 7 per cent for non-senior citizens and 7.50 per cent for elderly individuals on deposits maturing in 700 days.

The bank will continue to provide an interest rate of 3.25 per cent on fixed deposits maturing in the next 7 to 29 days and 3.20 per cent on deposits maturing in the next 30 to 45 days. Fixed deposits with maturities between 46 and 60 days will continue to pay 3.75 per cent interest, while those with maturities between 61 and 90 days will continue to pay 4.00 per cent interest. On deposits maturing from:

91 days to 119 days – 4.10 per cent

From 120 days to 180 days – 4.25 per cent

181 days to 332 days  – 4.80 per cent

333 days the bank has hiked the interest rate from 5.45 per cent to 5.60 per cent, a hike of 15 bps. 

Fixed deposits maturing in 334 days to less than one year will continue to offer an interest rate of 4.80 per cent, and term deposits maturing in one year will now offer an interest rate of 5.60 per cent, which was earlier 5.45 per cent, a hike of 15 bps. Federal Bank will continue to offer an interest rate of 5.60 per cent on deposits maturing in Above one year to less than 20 months, and the bank has hiked the interest rate from 5.90 per cent to 6.10 per cent, a hike of 20 bps on fixed deposits maturing in twenty months.

“Resident Term Deposits interest rates are also applicable to Resident Cash Certificate, Federal Savings Fund, Federal Tax Savings Deposits and NRO Fixed Deposits,” as per the Federal Bank’s website statement.

“Period for which the deposit is maintained with the Bank, irrespective of the contracted tenor. Deposits opened for a period of 2222 days will be treated as Green Deposits, and these deposits will be exclusively used for funding Green loan portfolio,” stated Federal Bank on its website.