Federal Bank Increases FD Rates to 8% with Special Tenure
Federal Bank has updated its fixed deposit (FD) interest rates, now offering up to 8% for senior citizens. These changes, effective from January 10, include the launch of a new 444-day tenure with the highest interest rate. The updated rates apply to deposits below ₹3 crore.
For general customers, the interest rates range from 3% to 7.50%, while senior citizens benefit from rates between 3.5% and 8%. Previously, the highest rate was 7.40% for tenures of 777 days and 50 months, making this new tenure a notable enhancement.
Interest rates effective from 10-01-2025 (Rates in % p.a)
| Period | Single Deposit Less than Rs 3 Crore – General Public | Single Deposit Less than Rs 3 Crore – Senior Citizen |
| 7 days to 29 days | 3.00% | 3.50% |
| 30 days to 45 days | 3.50% | 4.00% |
| 46 days to 180 days | 5.50% | 6.00% |
| 181 days | 6.50% | 7.00% |
| 182 days to 270 days | 6.25% | 6.75% |
| 271 days to less than 1 year | 6.50% | 7.00% |
| 1 year | 7.00% | 7.50% |
| Above 1 year to 399 days | 7.25% | 7.75% |
| 400 days | 7.35% | 7.85% |
| 401 days to 443 days | 7.25% | 7.75% |
| 444 days | 7.50% | 8.00% |
| 445 days to less than 2 years | 7.25% | 7.75% |
| 2 years to 776 days | 7.15% | 7.65% |
| 777 days | 7.40% | 7.90% |
| 778 days to less than 3 years | 7.15% | 7.65% |
| 3 years to less than 50 months | 7.10% | 7.60% |
| 50 Months | 7.40% | 7.90% |
| Above 50 months to 5 years | 7.10% | 7.60% |
| Above 5 years | 6.60% | 7.10% |
Policy on Premature Withdrawals
Federal Bank has also revised its premature withdrawal rules for FDs. Depositors can withdraw funds without penalty within the first 15 days, offering flexibility for those needing immediate access. Withdrawals made after 15 days will incur a 1% penalty on the interest earned.
IDBI Bank’s New Super Senior Citizen FD
IDBI Bank has introduced a specialised FD scheme, “IDBI Chiranjeevi-Super Senior Citizen FD,” catering to customers aged 80 and above. This scheme offers:
- 8.05% interest for a 555-day tenure.
- 7.90% for 375 days.
- 8.00% for 444 days.
- 7.85% for 700 days.
Both banks aim to attract depositors with competitive interest rates and customer-friendly policies.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 14, 2025, 12:17 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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