This Large Private Bank Hikes FD Interest Rates To 7.25% For Regular Citizens

IDFC First Bank has increased its fixed deposit interest rates and the new rates have already become effective beginning from October 10, 2022. It is worth noting that inflation has increased in India and globally at a fast rate. In order to tame inflation, the Reserve Bank of India has increased its repo rate for four times so far this year.

Earlier this year on September 30, 2022, RBI hiked the repo rate by 50 basis points.
Repo rates are interest rates charged by the Reserve Bank of India, when lending to banks. This is the fourth consecutive rate hike and the third half percentage point increase. Now the repo rate stands at 5.90%. Ever since the RBI hiked the repo rate, many leading private and public sector banks have been increasing the fixed deposit interest rates to make FDs more attractive.

Check the latest interest rates that IDFC First Bank will offer at its fixed deposits:
The bank has increased interest rates for Domestic and NRO Deposits less than INR 2 Crores.

• For FDs for the tenor of 7-29 days, the rate of interest offered is 3.50% p.a.
• For FDs maturing in 30-90 days, the interest rate will be 4.00% p.a.
• For FDs maturing in 91-180 days, the rate of interest remains at 4.50% p.a.
• For FDs maturing in 181 days -364 days, the interest offered is 5.75% p.a.
• For FDs maturing in 365 days- 500 days, the interest rate available is 6.25% p.a.
• For FDs maturing in 501 days - 749 days, the interest rate remains at 6.75% p.a.
• For FDs maturing in 750 days, the bank is offering the maximum interest rate at 7.25% p.a. This is the highest interest the bank is offering to general citizens.
• For FDs maturing in 751 days-3 years, the interest rate is 6.50% p.a.
• For FDs maturing in 3 years 1 Day -5 years, the interest rate is 6.50% p.a.
• For FDs maturing in 5 years -1 day -10 years, the rate of interest offered is 6.00% p.a.

Meanwhile, for tax saver deposit of 5 years tenure, the rate of interest is 6.50% p.a. for deposit less than Rs 2 crore.

According to the official website of IDFC First Bank, "The incentive for Senior Citizens will be at an additional spread of 0.50% over the above rate and will not be available for NRO Fixed Deposits."

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.