A private sector lender, Federal Bank, has reported an increase in interest rates on savings accounts.
A private sector lender called Federal Bank has announced a rise in interest rates on savings accounts. The new rates go into effect on October 1st, 2022, according to the bank’s official website. Because Federal Bank’s savings account interest rates are based on the repo rate, they have also increased as a result of the RBI’s Monetary Policy Committee’s decision to raise the repo rate by 50 basis points.
“As the interest rates are tied to repo rates, the interest rates will fluctuate as and when the repo Rate gets changed by RBI on a T+1 basis,” Federal Bank states on its website. The rates previously mentioned will be determined using the daily End of the Day balances held in Savings Bank accounts (Resident/NRE/ONR), and they will be credited to the appropriate accounts quarterly.
Interest rates on savings accounts at Federal Bank
The bank is now offering an interest rate of 2.90% below the RBI’s repo rate on savings account end-of-day balances of less than 5 lakhs and between 5 lakhs and less than 50 lakhs. As of right now, Federal Bank is providing interest rates that are 2.90% below the RBI repo rate for sums up to and including one lakh rupees and 2.85% below the RBI repo rate for the remaining balance above one lakh rupees.
For amounts up to and including one lakh rupees, Federal Bank is currently offering an interest rate of 2.90% below the RBI’s repo rate, and 2.80% below the RBI’s repo rate for the remaining value above one lakh rupees, on savings account end-of-day balances of fifty lakhs to five crores rupees.
The bank will now give an interest rate of 2.90% below the RBI’s repo rate for amounts up to and including 1 Lakh and 1.50% below the RBI’s repo rate for the remaining balance over 1 Lakh on savings account end-of-day balances of 5 Crores to less than 25 Crores. In contrast, Federal Bank is now guaranteeing an interest rate of 2.90% below the RBI’s repo rate for amounts up to and including 1 Lakh and 1.15% below the RBI’s repo rate for the remaining balance over 1 Lakh on savings accounts with end-of-day balances of 25 Crores and above.
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