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Mumbai-based bank revises bulk FD rates, senior citizens get additional rate of 0.5%

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Mumbai-based IDFC First Bank has revised its bulk fixed deposit interest rates across tenures. The interest rates on FDs without a premature withdrawal facility are higher compared to the rates offered with a premature withdrawal option. The interest rates vary from 5.45% to 7.55% on deposits from 2 crore and above. The new rates have come into effect from December 9. Banks are on the bandwagon of raising interest rates on FDs after RBI hiked the policy repo rate by 35 bps to 6.25% in the December 2022 policy.

FDs without premature withdrawal facility:

The interest rates are the same for FDs from 2 crore and above across various tenures. The highest rate would be 7.70% per annum offered on tenures from 366 – 399 days, while the bank offers a 7.55% interest rate on tenures from 400 days to 731 days.

Further, an interest rate of 7.45% is offered on 271 – 365 days and 732 – 1095 days tenure. On the longer tenures from 3 years 1 day to 10 years, the interest rate is 7.35% per annum.

The interest rate is 7.10% on 181 – 270 days; 7% on 92 – 180 days; 6.35% on 61 – 91 days; 5.80% on 46 – 60 days; and 5.70% on 36 – 45 days tenures.

On the shorter tenures from 7 days to 35 days, the interest rate is 5.45%.

According to IDFC First Bank‘s notification, the fixed deposit shall not have any premature withdrawal facility i.e. fixed Deposit cannot be closed by the depositor before the expiry of the term of such deposit. However, Bank may allow

premature withdrawal of these deposits in exceptional circumstances such as (a) in the event of any direction from any statutory and/or regulatory authority or (b) deceased claim settlement cases.

However, in case depositors want to carry a premature withdrawal on FDs with the above-mentioned interest rate, then the notification said, the bank will not pay any interest on the principal amount of the deposit. Any interest credited or paid up to the date of such premature closure will be recovered from the deposit amount.

Also, the monthly interest payout option is not available. The interest rate is calculated on the basis of 365 days for the period of fixed deposit falling in a non-leap (financial) year and 366 days for the period of fixed deposit falling in a leap (financial) year. At the time of opening the FD account, the auto-renewal facility is not available for such FDs.

For senior citizens, the bank is offering an additional spread of 0.50% over the rate of deposit for the respective tenure and will not be available for NRE or NRO Fixed Deposits.

FDs with premature withdrawal facility:

The highest rate here is 7.45% on 366 – 399 days; while the bank is offering 7.30% on 271 – 365 days and from 400 to 731 days tenures. Further, the rate is 7.20% on 732 – 1095 days, and 7.10% from 3 years 1 day to 10 years tenures.

Furthermore, the rate is 6.95% on 181 – 270 days; 6.85% on 92 – 180 days; and 6.20% on 61 – 91 days tenure. The rate is 5.70% on tenures from 36 days to 60 days, and the rate would be 5.45% from 7 days to 35 days.

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