The interest rates on fixed deposits under Rs. 2 crore have been modified by IDFC First Bank, one of the top lenders in the private sector.
On December 1, 2022, the new rates will take effect, according to the bank's official website. Following the change, the bank now offers an interest rate on FDs that ranges from 3.50% to 6.00% for maturities ranging from 7 days to 10 years. As of right now, IDFC First Bank will only offer a maximum interest rate of 7.25% on fixed deposits that mature in 750 days.
IDFC First Bank FD Rates
For FDs with maturities between 7 and 29 days, the bank is offering a 3.50% interest rate, while IDFC First Bank is offering a 4.00% interest rate for FDs with maturities between 30 and 90 days. The interest rates being offered by IDFC First Bank for deposits maturing in 91 to 180 days and 181 to 364 days, respectively, are 4.50% and 6.00%. Deposits that mature in 365 days to 500 days or 501 days to 749 days will now earn 6.50% interest and 6.75% interest, respectively.
The bank is offering a maximum interest rate of 7.25% on FDs maturing in 750 days, and IDFC First Bank is offering a rate of 6.50% on FDs maturing in 751 days to 5 years. The interest rate offered by IDFC First Bank is 6.00% for deposits maturing in 5 years, 1 day, or 10 years, and 6.50% for tax-saving accounts with a 5 year maturity.
The advantage for elderly citizens will have an additional premium of 0.50% over the aforementioned rate and won't be available for NRE or NRO fixed deposits. Senior citizens are given a distinct advantage and are qualified to earn interest that is 0.50 percent greater. You can choose between a monthly/quarterly interest pay-out option at IDFC First Bank or a quarterly compounding option. The "Premature Closure Penalty" outlined by the bank on the deposit date will apply to any prematurely closed term or fixed deposit. A fixed deposit that is prematurely closed carries a 1% fine.
In Q2FY23, IDFC First Bank's customer deposits increased by 36% YoY to Rs. 1,14,004 crore and CASA deposits increased by 37% YoY to Rs. 63,305 crore. The bank reported a CASA ratio of 51.28% on September 30, 2022. The net profit for the second quarter of FY23 increased from Rs. 152 crore in Q2-FY22 to Rs. 556 crore (up 266% YoY) and from Rs. 474 crore in Q1-FY23 (up 17% QoQ).
Net Interest Income (NII) increased by 32% YoY, from Rs. 2,272 crore in Q2-FY22 to Rs. 3,002 crore in Q2-FY23. At the end of September 2022, the bank has 670 locations nationwide and 812 ATMs (including recyclers). The Bank has grown since March 31, 2022, adding 29 branches and 93 ATMs.