IDFC First Bank hikes interest rates on fixed deposits below ₹2 crore

IDFC First Bank FD Rates

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

The interest rate on fixed deposits maturing in 2 years, 1 day and 749 days is now 6.50%, while the interest rate for fixed deposits maturing in 750 days now stands at a maximum of 6.90%. Fixed deposits maturing in 751 days to 5 years will continue to earn interest at the rate of 6.50% from IDFC First Bank. The bank will continue to offer 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 on its website mentions 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 the period exceeding 180 days is payable/compounded on quarterly basis.

The bank has also stated on its website that “Compound interest/reinvestment interest is calculated every quarter and is added to the principal in such a way that interest is paid on interest earned in the previous quarter as well. Monthly interest For deposits with payment option, interest will be calculated quarterly and monthly payment will be made at a concessional rate of standard FD rate.

The bank levies 1% penalty for premature withdrawal of fixed deposit. “In case of premature closure of Fixed/Fixed Deposit, interest will be paid based on the rate of interest applicable at the time of booking of Fixed/Fixed Deposit for the period for which the deposit has remained with the Bank. Further, if the Fixed/Fixed Deposit is closed prematurely, it will be subject to ‘Premature Closure Penalty’ as prescribed by the Bank on the date of deposit. The interest thereon shall be paid for the period for which the deposit has remained with the bank, after levying the penalty,” IDFC First Bank said on its website.

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