Federal Bank hikes savings account rates, new slabs are effective from today
Premium- Federal Bank has announced interest rates hike on repo rate-linked savings accounts in response to the Reserve Bank of India (RBI) raising its main repo rate, or the key lending rate, by 35 basis points on Wednesday, to 6.25% from 5.90%.
Federal Bank has announced interest rates hike on repo rate-linked savings accounts in response to the Reserve Bank of India (RBI) raising its main repo rate, or the key lending rate, by 35 basis points on Wednesday, to 6.25% from 5.90%. According to the bank's official website, the new rates are in effect as of today, December 8th, 2022. Since Federal Bank's savings account interest rates are linked with repo rates, they will fluctuate along with any revisions to the repo rate announced by the RBI. As a result, Federal Bank's savings bank deposits will likewise undergo a rise in savings account interest rates.
Federal Bank Savings Account Interest Rates
On savings account end of day balance of less than ₹5 Lakhs, the bank is offering an interest rate of 3.20% below RBI's Repo Rate, whereas on accounts with end of the day balance of ₹5 Lakhs to less than ₹50 Lakhs, Federal Bank will now offer an interest rate of 3.20% below RBI’s Repo Rate for an amount up to and including ₹1 Lakh and 3.15% below RBI's Repo Rate for the remaining balance above ₹1 Lakh.
On savings account end of day balance of ₹50 Lakhs to less than ₹5 Crores, the bank is offering an interest rate of 3.20% below RBI’s Repo Rate for amounts up to and including ₹1 Lakh and 3.00% below RBI’s Repo Rate for the remaining balance above ₹1 Lakh.
Federal Bank is offering an interest rate of 3.20% below RBI’s Repo Rate for amounts up to and including ₹1 Lakh and 0.75% below RBI’s Repo Rate for the remaining balance above ₹1 Lakh on savings accounts with end of the day balance of ₹5 Crores to less than ₹50 Crores.
On savings accounts with end of the day balance of ₹50 Crores and above, the bank is now offering an interest rate of 3.20% below RBI’s Repo Rate for amounts up to and including ₹1 Lakh and 0.25% below RBI’s Repo Rate for the remaining balance above ₹1 Lakh.
Federal Bank has mentioned on its website that “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."
For the quarter ended 30th September 2022, Federal Bank announced its highest ever net profit of ₹704 Cr, increasing by 53% YoY and an operating profit highest ever of ₹1212 Cr. The bank's ROA for Q2 was at 1.21% and ROE at 14.36% whereas it also declared a highest-ever net interest income at ₹1762 Cr, increasing by 19.09% YoY. NIM increased to 3.30%, higher by 10 bps YoY and GNPA and NNPA brought down to 2.46% and 0.78% respectively. Federal Bank's total advances increased by 19.40% in Q2FY23. As of September 30, 2022, the bank maintained 1305 branches and 1876 ATMs/Recyclers.
