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HomeBusinessIDFC 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

On fixed deposits under 2 crore, the private 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 after the adjustment for a number of maturities ranging from 501 days to 750 days. The increase in IDFC First Bank’s FD interest rates is in line with the 50 basis point increase in the repo rate by the RBI to 5.9%.

IDFC First Bank FD Rates

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

The bank raised the rate on fixed deposits with a maturity of 501 days to 749 days from 6.50% to 6.75% by 25 basis points, and on deposits with a maturity up to 750 days from 6.90% to 7.25% by 35 basis points. Fixed deposits with maturities between 751 days and 6 years continue to pay 6.50% interest, while deposits with maturities between 5 years and 10 years continue to pay 6% interest. The interest on a 5-year Tax Saver Deposit (for domestic deposits only) remains 6.50%.

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The senior benefit has a premium of 0.50% on top of the standard rate and does not apply to NRO Fixed Deposits. According to IDFC First Bank, interest on maturities up to 180 days is calculated on a “simple interest” basis, while interest on maturities over 180 days is paid/compounded quarterly.

The early closing penalty applies to retail term deposits/fixed deposits and is imposed at 1% for fixed deposits. IDFC First Bank has stated on its website that “In case of early closing of the Term/Fixed Deposit, interest will be paid based on the interest rate applicable at the time of booking the Term/Fixed Deposit, for the corresponding period for which the deposit has remained with the bank. In addition, a term/fixed deposit, if closed early, would be subject to the Premature Closure Penalty as prescribed by the Bank on the date of deposit.”

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