Federal Bank changed the interest rates of Fixed Deposit: Fixed deposits (FDs) have always been a favorite investment option for those who do not want to take risk and want steady returns. Federal Bank, which is one of the leading private sector banks in India, has recently revised its FD interest rates. Now this bank is offering annual interest of up to 8% to senior citizens and up to 7.5% to general citizens. These new rates have come into effect from 10 January 2025, which makes Federal Bank’s FD plans even more attractive for investors.
Key Highlights of Revised Rates:
1. Highest Interest Rate:
• Federal Bank is now offering the highest rate of 7.5% for general citizens and 8% for senior citizens on a special tenure of 444 days.
2. Competitive Rates Across Tenures:
• On 1 year FD: 7% for general citizens and 7.5% for senior citizens.
• On 2 year FD: 7.15% for general citizens and 7.65% for senior citizens.
• On 3-4 year FD: 7.10% for general citizens and 7.60% for senior citizens.
• On FDs of more than 5 years: 6.60% for general citizens and 7.10% for senior citizens.
3. Short-Term Deposits:
• Federal Bank also offers competitive rates for short-term tenures. For example, on FDs of 181 days, general citizens will get 6.5% interest and senior citizens will get 7% interest.
4. Special Tenures:
• The bank has also introduced some special tenures, such as 400 days and 777 days. The rates for these are 7.35% and 7.40% for general citizens and 7.85% and 7.90% for senior citizens.
Detailed Interest Rate Chart:
| Period | General (%) | Senior Citizens (%) |
|---|---|---|
| 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 |
Why is a small difference in interest rate important?
Even a small increase in interest rate can be very beneficial for big investments.
• If ₹5 lakh gets 0.50% more interest on a 5-year FD, then there can be an extra return of ₹12,500.
• If the amount is ₹10 lakh, then the extra income will increase to ₹25,000.
• A difference of 0.75% can give an extra return of ₹37,500 in 5 years.
Some more important things:
• Minimum Tenure: The minimum tenure to earn interest on FD is 7 days.
• ONR Accounts: Non-Resident Ordinary (ONR) account holders will not get the benefit of additional rates given for senior citizens.
• Benefits of Senior Citizens: Senior citizens will get extra 0.50% interest per tenure.
Conclusion:
The new FD interest rates of Federal Bank are a golden opportunity for those investors who want secure and profitable returns. With rates up to 8% for senior citizens and attractive options per tenure, these FDs are suitable for short-term and long-term financial goals.
Now could be the perfect time to take advantage of these rates. Before investing, evaluate your financial needs and if necessary, do not forget to consult a financial advisor.
