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Federal Bank revises interest rates on fixed deposits, offers upto 8 percent. Check the latest rates | Mint
Source: Live Mint
The Federal Bank has revised its fixed deposit interest rates starting Jan 10, 2025. Now this private bank offers up to 8 percent interest rate per annum on its FDs. The highest interest rate is now given on a tenure of 444 days. The highest rate is 7.5 percent for general citizens and 8 percent for senior citizens.
It is important to note that a small difference in interest rate seemingly does not make a much difference but it actually does. For instance, if you invest ₹5 lakh in a 5-year fixed deposit (FD), a 50 basis points (BPS) higher interest can raise your income by ₹12,500.
The income grows double when the invested amount is ₹10 lakh instead of 5 lakh. And if the difference in interest rates is 75 basis points, your income can further increase by ₹37,500 over a five-year period.
Across tenures
Back to Federal Bank. On one-year deposits, the private bank now offers 7 percent and 7.5 percent to general and senior citizens. On two-year deposits, the bank offers 7.15 percent and 7.65 percent to general and senior citizens.
On three year and four-year deposits, the bank now offers 7.10 percent to general citizens and 7.60 percent to senior citizens.
(Source: federalbank.co.in)
When the deposit is of 5-year duration, the bank offers 7.10 percent to general and 7.60 percent to senior citizens.
On deposits longer than five years, the bank offers 6.60 percent to general citizens and 7.10 percent to senior citizens.
The Minimum tenor for earning the interest on Resident/ONR Fixed Deposit is 7 days. And ONR (Non-Resident Ordinary) accounts are not eligible for additional interest offered to senior citizens.
