Federal Bank hikes FD rate to 8%, adds special tenure with high interest

Bank has added a new tenure of 444 days, offering the highest interest rate of 7.50% for general citizens

Federal Bank has recently made changes to its fixed deposit (FD) interest rates, now offering rates as high as 8 per cent for senior citizens. These revisions, effective from January 10, include the introduction of a new tenure of 444 days, which provides the highest interest rates available. It is important to note that the FD rates mentioned below apply to deposits of less than Rs 3 crore.

 

The revised interest rates for Federal Bank's fixed deposits vary based on the tenure and whether the depositor is a senior citizen. For general citizens, the interest rates now range from 3 per cent to 7.50 per cent, while senior citizens can enjoy rates between 3.5 per cent and 8 per cent. The introduction of the 444-day tenure marks a notable increase from previous offerings, where the highest rate was 7.40 per cent for tenures of 777 days and 50 months.

 

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%

 

Premature withdrawal policy

 

The Federal Bank has also updated its policy regarding premature withdrawals on fixed deposits. Depositors can withdraw their funds without penalty within the first 15 days, which is beneficial for those who might need immediate access to their funds. However, if withdrawals are made after this period, a penalty of one per cent on the interest earned will be applied.

 

Recently, IDBI Bank has also introduced a new specialised fixed deposit scheme, 'IDBI Chiranjeevi-Super Senior Citizen FD,' targeting customers aged 80 years and above. The 555-day tenure under this scheme offers an interest rate of 8.05 per cent per annum. The bank has also introduced appealing rates for other tenure options, including 7.90 per cent per annum for 375 days, 8.00 per cent per annum for 444 days, and 7.85 per cent per annum for 700 days.