IDFC First Bank raises fixed deposit interest rates by up to 35 basis points on these maturities

On term deposits under 2 crore, private sector lender IDFC First Bank raised interest rates by up to 35 basis points. According to the sources, the new rates will take effect on October 10, 2022. The bank raised its interest rates following the adjustment for a number of terms ranging from 501 days to 750 days. IDFC First Bank’s FD rate hike is in line with the RBI’s 50bp hike in the repo rate to 5.9%.

IDFC First Bank FD Rates

The bank will continue to offer an interest rate of 3.50% on term deposits with maturities between 7 and 29 days, while IDFC First Bank will continue to offer an interest rate of 4, 00% on deposits with maturities between 30 and 90 days. Term deposits with maturities between 91 and 180 days will continue to earn 4.50% interest, while term deposits with maturities between 181 and 364 days will continue to earn 5.50% interest. .75%. On deposits maturing between 365 and 500 days, IDFC First Bank will continue to pay interest at the rate of 6.25%.

The bank raised the interest rate on term 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% of 35 basis points. Term deposits with a maturity between 751 days and 6 years will continue to pay 6.50% interest, while those with a maturity 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%.

The senior citizen benefit will have a premium of 0.50% on top of the standard rate and will not apply to fixed NRO deposits. According to IDFC First Bank, rates on maturities up to 180 days are calculated on a “simple interest” basis, while interest on maturities greater than 180 days is paid/compounded quarterly.

An early close penalty will be applicable to term/fixed retail deposits and will be imposed at 1% for fixed deposits. IDFC First Bank mentioned on its website that “In the event of premature termination of the term/fixed deposit, interest will be paid on the basis of the interest rate applicable at the time of the reservation of the term/fixed deposit, for the corresponding period that the deposit has remained with the bank.In addition, a term/fixed deposit, if closed prematurely, would be subject to a “premature closing penalty” as prescribed by the Bank on the date of the deposit .”

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