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Federal Bank, a private sector lender, raised the interest rates on fixed deposits below 2 crore. According to the bank's official website, the new interest rates are effective as of August 17, 2022. The bank is now offering interest rates on fixed deposits with maturities ranging from 7 days to more than 75 months that span from 3.00% to 5.75% for the general public and 3.50% to 6.40% for senior citizens.

Federal Bank FD Rates

The bank will now give an interest rate of 3.00% on fixed deposits maturing in 7 days to 29 days, whereas Federal Bank will now offer an interest rate of 3.25% on fixed deposits maturing in 30 days to 45 days. Fixed deposits with maturities between 46 and 60 days are now available at a rate of 3.75%, while term deposits with maturities between 61 and 90 days are now available at a rate of 4.00%. On fixed deposits maturing from 91 days to 119 days, Federal Bank will now provide an interest rate of 4.10%, and on term deposits maturing from 120 days to 180 days, the bank will now offer an interest rate of 4.25%.

The bank will give an interest rate of 4.80% on fixed deposits that mature in 181 days to 332 days and 5.45% on fixed deposits that mature in 333 days. Fixed deposits with maturities between 334 days and less than a year currently have an interest rate of 4.80%, while those with maturities of 1 year have an interest rate of 5.45%. Federal Bank will now give an interest rate of 5.60% on fixed deposits maturing in more than a year but less than 20 months, and 5.90% on fixed deposits maturing in 20 months.

Fixed deposits will now provide an interest rate of 5.60% for maturities between above 20 months and less than 2 years, and 5.75% for maturities between 2 years and 749 days. Federal Bank will now pay a 6.10% interest rate on term deposits that mature in 750 days and a 5.75% interest rate on deposits that mature in 751 days to 2221 days. Currently, Federal Bank will pay 6.00% interest on fixed deposits that mature in 2222 days and 5.75% interest on fixed deposits that mature in 2223 days to less than 75 months. The bank will now provide interest rates of 6.10% and 5.75% on fixed deposits due in 75 months and over 75 months, respectively.

Federal Bank FD Rates
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Federal Bank FD Rates (federalbank.co.in)

The policy repo rate under the liquidity adjustment facility (LAF) was raised by 50 basis points to 5.40 per cent as of August 3-5, 2022, in accordance with the Monetary Policy Statement, 2022–23 Resolution of the Monetary Policy Committee (MPC) of the Reserve Bank of India. Banks have increased interest rates on their retail loans and deposit products as a result of the market's rising interest rates. When it comes to fixed deposit interest rates, they are on the rise, and investors may benefit by locking in their deposits with a bank that guarantees them higher interest rates than their competitors. Fixed deposit investors should note that, since the repo rate hike of RBI, a handful of banks such as SBI, HDFC, Axis Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, IndusInd Bank, PNB, Canara Bank, Central Bank of India, Indian Overseas Bank (IOB), Karur Vysya Bank, and Ujjivan Small Finance Bank have already hiked their interest rates on fixed deposits so far.

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