The Federal Bank has reduced its Fixed Deposit (FD) and savings account interest rates. The cut in the FD and savings account interest rates comes after the Reserve Bank of India (RBI) reduced the repo rate by 50 basis points since February 2025. On the savings account, the Federal Bank has reduced the interest rate by up to 25 basis points on select balances, and on the fixed deposit, the bank has reduced the interest rate by up to 25 bps for certain tenures.The Federal Bank rate cuts are effective from April 17, 2024.
Also read: IDBI Bank cuts FD rates across special deposit, extends Utsav fixed deposit deadline
According to the press release issued by the bank, “The savings rates have seen a rate cut of 25 bps i.e. for balances up to Rs 50 Lakh, the revised rates are 2.75% from the earlier 3% and for balances up to Rs 50 Crore, the revised rates are 5.25% and similarly the rates have been reduced for multiple buckets. For the deposit rates that are less than Rs 3 Crore, the tenures have been revised, and for a period between 1 year and 443 days, the revised rates are 7%.”
Latest Federal Bank FD Interest rates
The Federal Bank has reduced the FD interest rates by up to 1% for select deposit tenures. For FD deposits with tenures ranging from 46 days to 90 days, the FD interest rate has been reduced by 1%, from 5.50% to 4.50%. For FD tenures between 91 days and 180 days, the bank now offers a FD interest rate of 5% instead of 5.50%-a rate cut of 0.50%.The bank has stopped offering an FD tenure of 181 days with a higher interest rate separately. Earlier, 181-day FD was offering 6.50% and FD tenures between 182 days and 270 days were offering 6.25%. Going forward, the bank will offer an interest rate of 6% per annum for FD deposits held for 181 to 270 days.
The bank has cut the interest rate on one-year Federal Bank FD by 0.15%. The rate is 6.85% instead of 7%, as it was earlier.
Also read: Now ICICI Bank cuts FD, savings account interest rates; check details
The bank has merged the FD tenures of above one year to 399 days (offering 7.25%), 400 days (offering 7.35%) and 401 to 443 days (offering 7.25%). The bank will now offer FD tenure of above one year to 443 days. The interest rate for this tenure will be 7% – a cut in interest rate by up to 35 bps.
On the special 444-day tenure, the interest rate has been cut by 20 bps-from 7.50% to 7.30%. For tenures ranging from 445 days to five years, the FD interest rate is now 7%, and for long-term deposits above five years up to 10 years, the bank offers 6.50%.
| Period | Single Deposit Less than ₹300 Lakhs – General Public | Single Deposit Less than ₹300 Lakhs – Senior Citizen |
| 7 days to 29 days | 3.00% | 3.50% |
| 30 days to 45 days | 3.50% | 4.00% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 180 days | 5.00% | 5.50% |
| 181 days to 270 days | 6.00% | 6.50% |
| 271 days to less than 1 year | 6.50% | 7.00% |
| 1 year | 6.85% | 7.35% |
| Above 1 year to 443 days | 7.00% | 7.50% |
| 444 days | 7.30% | 7.80% |
| 445 days to 5 years | 7.00% | 7.50% |
| Above 5 years to 10 years | 6.50% | 7.00% |
Federal Bank current savings account interest rates
The bank has reduced the savings account interest rates on select balances by up to 25 basis points (bps). On balances up to and including Rs 1 lakh, the interest rate is 2.75%, earlier, it was 3%. The following are the savings account interest rates effective from April 17, 2025:
| Slab | End of the Day Balance | Rates of interest (p.a) |
| 1 | Upto and including ₹1L | 2.75% – uniform rate |
| 2 | Above ₹1L to less than ₹50Cr | 2.75% for balance less than ₹50L |
| 3.50% for balance of ₹50L to less than ₹5Cr | ||
| 5.25% for balance of ₹5Cr to less than ₹50Cr | ||
| 3 | ₹50Cr to less than ₹150Cr | 2.75% for balance upto ₹1L |
| 6.90% for balance above ₹1L to less than ₹150Cr | ||
| 4 | ₹150Cr and above | 2.75% for balance upto ₹1L |
| 3.00% for balance above ₹1L |
According to the bank’s website, “The rates as mentioned above will be calculated on the daily end-of-day balances maintained in Savings Bank accounts (Resident/NRE/ONR) and the same will be credited to respective accounts on a quarterly basis.”
Source Link
