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Home / Money / Personal Finance /  IDFC First Bank hikes interest rates on fixed deposits of less than 2 Cr
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For fixed deposits below 2 crore, the private sector lender IDFC First Bank has increased interest rates. The higher interest rates are effective as of August 16, 2022, according to the bank's official website. With the latest change, IDFC First Bank will now give an interest rate of 6.50% on fixed deposits maturing in 2 years 1 day to 749 days and 6.90% on fixed deposits maturing in 750 days. Previously, the bank offered an interest rate of 6.50% on fixed deposits maturing in 2 years 1 day to 3 years.

IDFC First Bank FD Rates

On fixed deposits maturing in 7 days to 29 days the bank will continue to offer an interest rate of 3.50% and on fixed deposits maturing in 30 - 90 days the bank will continue to offer an interest rate of 4.00%. IDFC First Bank will continue to offer an interest rate of 4.50% on fixed deposits maturing in 91 - 180 days and 5.75% will be continued on fixed deposits maturing in 181 days – 1 year. Fixed deposits maturing in 1 year 1 day – 499 days will continue to offer an interest rate of 6.25% and term deposits maturing in 500 days – 2 years will continue to offer an interest rate of 6.50%.

The interest rate for fixed deposits maturing in 2 years, 1 day and 749 days is now 6.50%, while the interest rate for term deposits maturing in 750 days is now a maximum of 6.90%. Fixed deposits maturing in 751 days to 5 years will continue to earn interest at a rate of 6.50% from IDFC First Bank. The bank will continue to provide an interest rate of 6% on fixed deposits maturing in 5 years, 1 day, to 10 years, while IDFC First Bank will continue to offer an interest rate of 6.50% on tax-saving fixed deposits.

IDFC First Bank FD Rates
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IDFC First Bank FD Rates (idfcfirstbank.com)

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 NRO Fixed Deposits. Rates up to 180 days are on “simple interest" basis. Interest on tenor above 180 days is payable/compounded on quarterly basis."

The bank has also said on its website that “Compound Interest/ re-investment interest is calculated every quarter and is added to the Principal such that Interest is paid on the Interest earned in the previous quarter as well. For deposits with monthly interest pay-out option, the interest shall be calculated for the quarter and paid monthly at a discounted rate over the Standard FD Rate."

The bank levies a 1% penalty for premature withdrawals of fixed deposits. “In case of premature closure of the Term/Fixed Deposit, interest will be paid basis interest rate applicable at the time of booking the term/fixed deposit, for the corresponding period for which deposit has remained with the bank. Additionally, term/fixed deposit if prematurely closed, would be subject to ‘Premature Closure Penalty’ as prescribed by the Bank on the date of deposit. The Interest thereon will be paid for the period for which the deposit has remained with the bank, after application of penalty," said IDFC First Bank has said on its website.

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