Federal Bank hikes interest rate

Federal Bank has increased the rate of interest on both resident and NRE term deposits for a period of 1 year to 10 per cent. 


The rates of interest for resident deposits for other maturity periods are as follows:  7 days to 45 days - 5 per cent; 46 days to 180 days - 7 per cent; 181 days to 199 days - 8.50 per cent; 200 days - 9.50 per cent; 201 days to less than 1 year - 8.50 per cent; above 1 year to less than 3 years - 9.50 per cent; 3 years and above - 9.25 per cent.


The rate of interest for NRE term deposits for a period of 1 year to less than 3 years is 9.50 per cent and for a period of 3 years and above is 9.25 per cent. Senior citizens are eligible for additional interest of 0.50 per cent on resident term deposits. The above rates are effective from April 3, according to a press release.