Federal Bank Makes Interest Rate Revision On Savings Accounts (W.e.f. 5th May 2022)

Federal Bank, a private sector lender, adjusted interest rates on savings accounts today, May 5th, 2022, only one day after the RBI on Wednesday raised the repo rate by 40 basis points to 4.40 per cent from 4 per cent earlier. Since Federal Bank's savings account interest rates are linked to repo rates, new interest rates will be seen effective starting today.

"As the interest rates are linked to Repo rates, the interest rates will change as and when the Repo Rate gets revised by RBI on a T+1 basis. The rates as mentioned above will be calculated on the daily End of the Day balances maintained in Savings Bank accounts (Resident/NRE/ONR) and the same will be credited to respective accounts on a quarterly basis," the bank has mentioned on its website.

The interest rate on savings bank deposits of less than Rs 5 crore will be 1.75 per cent lower than the RBI's Repo Rate of 4.40 per cent, resulting in a rate of 2.65 per cent. Similarly, on savings bank deposits of 5 crores and above, the interest rate will be 1.75 per cent lower than the RBI's repo rate for amounts up to and including Rs 1 lakh, and 0.60 per cent lower than the RBI's repo rate for the balance over Rs 1 lakh.

Federal Bank Savings Account Interest Rates 2022

Slab	End of the Day Balance	Rates of Interest (p.a)
1	Less than ₹5 Crores	1.75% below RBI's Repo Rate
2	₹5 Crores and above	1.75% below RBI's Repo Rate for amount up to and including ₹1Lakh and 0.60% below RBI's Repo Rate for the remaining balance above ₹1Lakh
Source: Bank Website. W.e.f. 5th May 2022

The Reserve Bank of India (RBI) startled everyone on Wednesday by raising repo rates by 40 basis points (bps). So, with effect from May 4, the RBI policy repo rate is 4.4 per cent, post which Bandhan Bank, ICICI Bank, and Jana Small Finance Bank have raised fixed deposit interest rates. Bandhan Bank hiked interest rates on deposits maturing in one year to 18 months and above 18 months to less than two years from 5.25 per cent to 5.75 per cent on Wednesday, May 4th, a 50 basis point or 0.5 per cent increase. Jana Small Finance Bank hiked interest rates today on three- to five-year deposits from 6.75 per cent to 7% today, a 25-basis-point increase. ICICI Bank, on the other hand, has increased interest rates on fixed deposits of Rs 2 Cr to Rs 5 Cr over a range of tenors.