Maximum Returns on 18-Month FDs: Federal Bank Hikes Interest Rates
Federal Bank has increased its fixed deposit (FD) interest rates. Senior citizens can now earn up to 7.40% interest on FDs with tenures of 18 months, as well as those ranging from 2 years to less than 3 years. Read on to find out the bank's new FD interest rates.
If you are considering opening a fixed deposit, Federal Bank’s new interest rates might be of interest to you. This private-sector bank has increased the additional interest offered to senior citizens. Senior citizens can now earn up to 7.40% annual interest on FDs for select tenures, while the maximum interest rate for general customers for these same tenures is 6.80%.
The bank's new rates came into effect on November 12, 2024. Notably, the increased interest applies not only to 18-month FDs but also to deposits with tenures ranging from 2 years to less than 3 years.
How much interest will senior citizens receive?
Federal Bank has raised the additional interest offered to senior citizens on FDs from 0.50% to 0.60%—an increase of 0.10%. However, this benefit varies depending on the FD tenure.
Under the new rates, senior citizens will earn 7.10% annual interest on 1-year FDs, 7.40% on 18-month FDs and FDs with tenures between 2 and 3 years (less than 3 years), and 7.20% on deposits with tenures ranging from 3 to 10 years.
New Interest Rates for Senior Citizens:
| FD Tenure |
Interest Rate |
|---|---|
| 7 to 29 Days |
3.60% |
| 30 to 45 Days |
3.85% |
| 46 to 90 Days |
5.60% |
| 91 to 180 Days |
5.70% |
| 181 to 270 Days |
6.60% |
| 271 Days to Less Than 1 Year |
6.65% |
| 1 Year |
7.10% |
| More Than 1 Year to Less Than 18 Months |
7.15% |
| 18 Months |
7.40% |
| More Than 18 Months to Less Than 2 Years |
7.15% |
| 2 Years to Less Than 3 Years |
7.40% |
| 3 Years to 10 Years |
7.20% |
What are the FD rates?
General customers can also earn better interest rates on certain select FD tenures, though their returns will be lower than those offered to senior citizens. At Federal Bank, all customers can earn an annual interest rate of 6.80% on fixed deposits (FDs) with tenures ranging from 18 months to less than 3 years (including a 2-year tenure). Meanwhile, an interest rate of 6.50% is offered on 1-year deposits, and 6.60% on deposits with tenures ranging from 3 to 10 years.
FD rates for general customers-
| FD Tenure |
Interest Rate |
|---|---|
| 7 to 29 Days |
3.00% |
| 30 to 45 Days |
3.25% |
| 46 to 90 Days |
5.00% |
| 91 to 180 Days |
5.10% |
| 181 to 270 Days |
6.00% |
| 271 Days to Less Than 1 Year |
6.05% |
| 1 Year |
6.50% |
| More Than 1 Year to Less Than 18 Months |
6.55% |
| 18 Months |
6.80% |
| More Than 18 Months to Less Than 2 Years |
6.55% |
| 2 Years to Less Than 3 Years |
6.80% |
| 3 Years to 10 Years |
6.60% |
How much interest will an FD of ₹1 crore earn?
Federal Bank also offers special interest rates on certain large-value deposits. If a senior citizen opens an FD of ₹1 crore or more—without opting for a premature withdrawal facility—they can earn an annual interest rate of up to 7.50%.
