Fixed Deposit Rate Hike: There is good news for those investing hard-earned money in FDs. IDFC First Bank has increased the interest rates on FDs.
New Delhi. After the increase in the repo rate by the Reserve Bank of India (RBI), banks have also started increasing the interest rates of loans. Apart from increasing the interest rate on loans, interest rates on bank deposits have also started increasing. Meanwhile, IDFC First Bank of the private sector has increased the interest rates on fixed deposits i.e. FDs of less than Rs 2 crore.
New Rates Effective July 1, 2022
The new Federal Bank rates are effective from July 1, 2022. The bank has increased the interest rates on FDs with tenures ranging from one to five years. After the change, the customers of Federal Bank will now get an interest rate of 3.50 percent to 6.00 percent on FDs maturing in 7 days to 10 years. Apart from this, customers of the bank will get an interest rate of 6.50 percent on FDs maturing in less than 3 years, 1 day or 5 years.
RBI increased the repo rate twice within 36 days.
Significantly, on June 8, 2022, RBI Governor Shaktikanta Das announced an increase of 50 basis points in the repo rate, increasing it from 4.40 percent to 4.90 percent. Earlier, on May 4, 2022, the central bank had increased the repo rate by 40 basis points from 4.00 percent to 4.40 percent.