Home / Money / Personal Finance /  This Mumbai-based bank gives inflation-beating rates on bulk FDs, senior citizens get additional 0.5%

This Mumbai-based bank gives inflation-beating rates on bulk FDs, senior citizens get additional 0.5%

The minimum tenure begins from 7 days to a maximum of 10 years. Senior citizens can earn an additional 0.5% on these interest rates. (Bloomberg)Premium
The minimum tenure begins from 7 days to a maximum of 10 years. Senior citizens can earn an additional 0.5% on these interest rates. (Bloomberg)

  • The highest rate offered is 7.2% -- which is inflation-beating as CPI is currently at 7%. Overall, on these bulk FDs, the interest ranges from 4.9% to 7.20%. The new rates have come into effect from October 4, 2022.

Mumbai-based IDFC First Bank has revised interest rates on bulk fixed deposits between 2 crore to 25 crore after RBI hiked the repo rate by another 50 basis points to 5.9%. The minimum tenure begins from 7 days to a maximum of 10 years. Senior citizens can earn an additional 0.5% on these interest rates. The highest rate offered is 7.2% -- which is inflation-beating as CPI is currently at 7%. Overall, on these bulk FDs, the interest ranges from 4.9% to 7.20%. The new rates have come into effect from October 4, 2022.

The bank offers a 7.25% interest rate on 366 - 399 days tenures, while the rate is 7.20% on tenures starting from 400 days to 731 days. On higher tenures from 732 days to 10 years, the interest rate is 7.15%.

IDFC First gives a 7% rate on 271 - 365 days, while the rate is at 6.65% on 181 - 270 days tenures, and 6.55% on 92 - 180 days tenures. It offers 5.80% rate on 61 - 91 days, 5.25% on 46 - 60 days, and 5.15% on 36 - 45 days tenures.

On a shorter duration from 7 days to 35 days, the interest rate is 4.9%.

Notably, on these FDs, there is no premature withdrawal facility available.

IDFC First Bank said, "Fixed Deposit shall not have any premature withdrawal facility i.e. fixed Deposit cannot be closed by the depositor before expiry of the term of such deposit. However, Bank may allow premature withdrawal of these deposits in exceptional circumstances such as (a) in the event of any direction from any statutory and/or regulatory authority or (b) deceased claim settlement cases."

Further, the bank added that "in the event of premature withdrawal of these deposits under the above-mentioned exceptional circumstances, the Bank will not pay any interest on the principal amount of the deposit. Any interest credited or paid upto the date of such premature closure will be recovered from the deposit amount."

For elderlies, the bank said, an incentive for Senior Citizens will be at an additional spread of 0.50% over the rate of deposit for the respective tenor and will not be available for NRE or NRO Fixed Deposits.

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