The private sector lender IDFC First Bank has hiked interest rates on fixed deposits (FDs) of less than ₹2 Cr. According to the bank's official website, the new rates will take effect on December 21, 2022. Following the revision, the bank is now providing interest rates on deposits that mature in 7 days to 10 years that range from 3.50% to 7.00%. The maximum interest rate on deposits at IDFC First Bank that matures in 18 months, 1 day, to 3 years is currently 7.50% for non-senior residents and 8% for senior citizens.
IDFC First Bank FD Rates
The bank currently offers a 3.50% interest rate on deposits that mature in 7 to 29 days and a 4.00% interest rate on deposits that mature in 30 to 45 days. On FDs maturing in 46 to 90 days, IDFC First Bank will now give an interest rate of 4.50%, and on those maturing in 91 to 180 days, the bank will now guarantee an interest rate of 5.00%. Deposits maturing in 181 days to 366 days and 367 days to 18 months will now earn interest at a rate of 6.75% and 7.25%, respectively. The bank currently offers a maximum interest rate of 7.50% on deposits maturing in 18 months, 1 day, to 3 years, while IDFC First Bank also offers an interest rate of 7% on deposits maturing in 3 years to 10 years.
IDFC First Bank has mentioned on its website that “ The incentive for Senior Citizens will be at an additional spread of 0.50% over the above rate and will not be available for NRE or NRO Fixed Deposits." According to Section 80C, deposits in Tax Saver FDs up to Rs. 1.5 lakhs are free from income tax, and on such deposit types, the general public may now earn 7% interest and senior citizens can now earn 7.50% interest. If the total interest income from all of your FDs is less than Rs. 40,000 for regular depositors and Rs. 50,000 for senior citizens, no TDS will be withheld from the interest you earn, which will be added to your overall income and taxed according to the applicable slab. A fixed deposit account should be opened with a minimum balance of ₹10,000 to be eligible for fixed deposit benefits of IDFC First Bank.
Meanwhile, Canara Bank and Federal Bank have announced interest rate hikes on retail term deposits of less than ₹2 Cr. This is in line with RBI’s recent repo rate hike by 35 bps to 6.25%.
At Federal Bank, deposits with maturities between 18 months and 2 years will now earn a maximum interest rate of 7.75% for senior citizens and 7.25% for non-senior citizens. Federal Bank is offering interest rates on deposits maturing in 7 days to 2223 days or more starting today, December 18, 2022, ranging from 3.00% to 6.30% for the general public and 3.50% to 6.95% for senior citizens. On deposits maturing in 7 days to 10 years, Canara Bank currently provides interest rates ranging from 3.25% to 6.50% for the general public and 3.25% to 7.00% for senior citizens. This represents an increase in fixed deposit interest rates of up to 55 bps across a variety of tenors going to be in force from December 19. Canara Bank will now provide a maximum interest rate of 7% to the general public on deposits that mature in 666 days.
This article taken by livemint.com
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