In keeping with the overall decline in lending and deposit rates, Federal Bank has cut the interest rates offered on domestic fixed deposits by 0.50 to 0.25 percentage points.
The heaviest cut is in the short-term deposit rate, where interest rate has been cut to 3.5% from 4.00% earlier.
On longer-term maturities, interest rate has been cut by around 25 basis points. (see chart below)
The cuts will be effective only from the 18th of this month. Deposits of duration between 15-59 days have not seen any interest cuts.
Federal banks reduction of deposit rates come on the heels of the Reserve Bank of India reducing its key lending rates by around 75 basis points over the last 2-3 quarters.
New fixed deposit rates of Federal Bank are as follows:
|
Period
|
Existing
|
Revised w.e.f 18/06/2015
|
|
7 days to 14 days
|
4.00%
|
3.50%
|
|
15 days to 29 days
|
5.00%
|
5.00%
|
|
30 days to 45 days
|
5.00%
|
5.00%
|
|
46 days to 59 days
|
7.00%
|
7.00%
|
|
60 days to less than 1 year
|
7.50%
|
7.25%
|
|
1 year only
|
8.50%
|
8.25%
|
|
Above 1 year to less than 2 years
|
8.40%
|
8.25%
|
|
2 years and above
|
8.25%
|
8.00%
|