Federal Bank Hikes Savings Account Interest Rates With Up To 7.15% Returns

Leading private sector lender Federal Bank has hiked its interest rates on savings accounts ahead of Holi, a well-known and significant Hindu festival that is set to take place on Monday, March 25. This is a festive treat for those who are new to the financial market and would like to open a savings account with a higher interest rate. With the modification, Federal Bank is now providing savings account holders with a maximum return of 7.15%. The new interest rates are effective as of March 20, 2024.

Federal Bank Savings Account Interest Rates

The bank is offering an interest rate of 3.05% on savings accounts with an end-of-day balance of up to and including Rs. 1 lakh. For savings accounts with an end-of-day balance of less than Rs. 5 crores, the interest rate is 3.05% for balances less than Rs. 5 lakh, 3.10% for balances between Rs. 5 lakh and Rs. 50 lakh, 3.75% for balances between Rs. 50 lakh and less than Rs. 2 Cr, and 4.00% for balances exceeding Rs. 2Cr.

The bank is now giving an interest rate of 3.05% for balances up to and including Rs 1 lakh and 5.50% for the remaining balance over Rs 1 lakh on savings accounts with end-of-day balances of Rs 5 crores to less than Rs 50 crores. Federal Bank is now offering interest rates on savings accounts with end-of-day balances of Rs 50 crore to less than Rs 200 crore: 3.05% for balances up to and including Rs 1 lakh, and 6.00% for the remaining value over Rs 1 lakh.

Whereas on savings accounts with end of the day balance of Rs 200 Crores and above, Federal Bank is now promising an interest rate of 3.05% for balances upto and including Rs 1 lakh and 7.15% for the remaining balance above Rs 1 lakh.

"The rates as mentioned above will be calculated on the daily End of the Day balances maintained in Savings Bank accounts (Resident/NRE/ONR) and the same will be credited to respective accounts on a quarterly basis," mentioned Federal Bank on its website.

Federal Bank News

Recently on 12th March, the Reserve Bank of India asked Federal Bank to stop issuing new co-branded credit cards.
"The Bank is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance. The Bank continues to offer credit cards to new and existing customers in the non-co-branded segment and will also continue to service the existing customers who currently hold co-branded credit cards issued by the Bank, said Federal Bank in a stock exchange filing.