Sunday, April 21, 2024
HomeBusinessFinanceIDFC First Bank hikes fixed deposit interest rates up to 35 bps...

IDFC First Bank hikes fixed deposit interest rates up to 35 bps on these tenors

[ad_1]

On fixed deposits under 2 crore, the private sector lender IDFC First Bank hiked interest rates by up to 35 basis points. The bank’s official release statement states that the new rates will go into effect on October 10, 2022. The bank hiked its interest rates following the adjustment for a number of tenors ranging from 501 days to 750 days. The rise in IDFC First Bank’s FD rates is in line with the RBI’s 50 basis point hike in the repo rate to 5.9%.

IDFC First Bank FD Rates

The bank will continue to give an interest rate of 3.50% on fixed deposits maturing in 7 to 29 days, while IDFC First Bank will continue to offer an interest rate of 4.00% on deposits maturing in 30 to 90 days. Fixed deposits with maturities between 91 and 180 days will continue to pay 4.50% interest, while term deposits with maturities between 181 and 364 days will continue to earn 5.75% interest. On deposits maturing in 365 days to 500 days, IDFC First Bank will continue to pay interest at a rate of 6.25%.

The bank increased the interest rate on fixed deposits maturing in 501 days to 749 days from 6.50% to 6.75% by 25 basis points, and on deposits maturing in 750 days from 6.90% to 7.25% by 35 basis points. Fixed deposits with maturities between 751 days and 6 years will continue to pay 6.50% interest, while those with maturities between 5 years and 10 years will continue to pay 6% interest. The interest rate on a 5-year Tax Saver Deposit (Only for Domestic Deposits) will remain at 6.50%, according to IDFC Bank.

IDFC First Bank FD Rates

View Full Image

IDFC First Bank FD Rates (idfcfirstbank.com)

The senior citizen benefit will have a 0.50% premium over and above the standard rate and won’t apply to NRO Fixed Deposits. According to IDFC First Bank, rates on tenors up to 180 days are calculated on a “simple interest” basis, whereas interest on tenors higher than 180 days is paid/compounded quarterly.

Premature closure penalty will be applicable to Retail Term/Fixed Deposits and will be imposed at 1% for fixed deposits. IDFC First Bank has mentioned on its website that “In case of premature closure of the Term/Fixed Deposit, interest will be paid basis interest rate applicable at the time of booking the term/fixed deposit, for the corresponding period for which deposit has remained with the bank. Additionally, term/fixed deposit if prematurely closed, would be subject to ‘Premature Closure Penalty’ as prescribed by the Bank on the date of deposit.”

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

[ad_2]

Source link

RELATED ARTICLES

most popular

Recent Comments