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Federal Bank, a private sector lender, has altered its savings account interest rates. According to the bank's official website, the new rates are in effect as of today, on January 23, 2023.

The bank is now offering an interest rate of 3.20% below the RBI's repo rate on savings accounts with end-of-day balances of less than 5 lakhs. Federal Bank is now offering an interest rate of 3.20% below the RBI's repo rate on savings accounts with end-of-day balances of 5 lakhs to less than 50 lakhs, and 3.15% below the RBI's repo rate on balances of 5 lakhs and above.

On a savings account end-of-day balance of 50 Lakhs to less than 2 Crores, Federal Bank is currently offering an interest rate of 3.20% below the RBI's repo rate for balances below 5 Lakhs, 3.15% below the RBI's repo rate for balances between 5 Lakhs and less than 50 Lakhs, and 2.50% below the RBI's repo rate for balances above 50 Lakhs.

On a savings account end-of-the-day balance of 2 Crores to less than 5 Crores, Federal Bank is now offering an interest rate of 3.20% below RBI’s Repo Rate for balances below 5 Lakhs, 3.15% below RBI's Repo Rate for the balance of 5 Lakhs to less than 50 Lakhs, 2.50% below RBI’s Repo Rate for the balance of 50 Lakhs to less than 2 Crores and 2.25% below RBI’s Repo Rate for the balance of 2 Crores and above.

On a savings account end-of-the-day balance of 5 Crores to less than 50 Crores, the bank is now offering an interest rate of 3.20% below RBI’s Repo Rate for balances up to and including 1 Lakh and 0.75% below RBI’s Repo Rate for the remaining balance above 1 Lakh. On a savings account end-of-the-day balance of 50 Crores and above, Federal Bank is now offering an interest rate of 3.20% below RBI’s Repo Rate for balances up to and including 1 Lakh and 0.25% below RBI’s Repo Rate for the remaining balance above 1 Lakh.

Federal Bank Savings Account
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Federal Bank Savings Account (federalbank.co.in)

The Federal Bank's savings account interest rates will be calculated on the daily end-of-the-day balances held in savings bank accounts (Resident/NRE/ONR), and the appropriate accounts will get the interest payout on a quarterly basis. 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 third quarter of the current fiscal year, or Q3 FY23, which concluded in December 2022, saw Federal Bank's highest standalone net profit ever at 803.6 crore, up 54% from 521.7 crore in the same period of the previous fiscal year. The bank reported ROA for the third quarter of 1.33% and an ROE of 15.91%, coupled with its highest-ever net interest income of Rs. 1957 Cr., a growth of 27.14% YoY. The bank's overall business reached Rs. 369581.25 Cr as of December 31, 2022, a growth of 16.89%. The total amount of deposits jumped from 175431.70 Cr as of December 31, 2021 to Rs. 201408.12 Cr as of December 31, 2022. To Rs. 68967.14 Cr., CASA Deposits grew by 7.19%.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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