Interest rates have increased for fixed deposits under Rs. 2 crores, according to private sector lender IDFC First Bank. According to the bank’s official website, the higher interest rates will take effect on August 16, 2022.
As a result of the most recent change, IDFC First Bank will now pay interest at a rate of 6.90 per cent for fixed deposits maturing in 750 days and 6.50 per cent for those maturing in 2 years, one day. Before this, the bank offered fixed deposits with maturities ranging from 2 years, one day to 3 years at a rate of 6.50 per cent.
The bank will still offer fixed deposit interest rates of 3.50 per cent for deposits maturing in 7 to 29 days and 4.00 per cent for deposits maturing in 30 to 90 days. IDFC First Bank will continue to offer a 4.50 per cent interest rate on fixed deposits that mature in 91 to 180 days and a 5.75 per cent interest rate on deposits that mature in 181 days or more. 6.25 per cent interest will continue to be paid on fixed deposits with maturities between 1 year and 499 days, and 6.50 per cent interest will continue to be paid on having maturities ranging from 500 days to 2 years, term deposits.
According to the IDFC First Bank website, the incentive for senior citizens will have an additional spread of 0.50% over the stated rate and won’t be available for NRO Fixed Deposits. “Simple interest” is used to compute rates for terms up to 180 days. Interest is due and compounded quarterly on maturities longer than 180 days.