Private sector lender Federal Bank increased the interest it charges on savings accounts. The new rates go into effect on February 9, 2023, according to the bank's official website.
Federal Bank made this declaration in response to the RBI's 25 basis point increase in the repo rate to 6.5%. Since the interest rates on savings accounts at Federal Bank are based on repo rates, they will change as and when the RBI changes the repo rate on a T+1 basis. Due to this, Federal Bank raised the interest rates on its clients' savings accounts by 25 basis points.
National Bank Interest Rates on Savings Accounts: The bank is now offering an interest rate that is 3.45% below the RBI's repo rate on savings accounts with end-of-day balances of less than Rs. 5 lakh, and it is now offering an interest rate that is 3.40% below the RBI's repo rate on balances of Rs. 5 lakh and higher on savings accounts with end-of-day balances of Rs. 5 lakh to less than Rs. 50 lakh.
On savings accounts with end-of-day balances between Rs. 50 lakh and Rs. 2 crore, the bank is now offering an interest rate that is 3.45% lower than the RBI's repo rate for balances under Rs. 5 lakh, 3.40% lower than the RBI's repo rate for balances between Rs. 5 lakh and less than Rs. 50 lakh, and 2.75% lower than the RBI's repo rate for balances over Rs. 50 lakh.
Customers of Federal Bank will now receive interest rates that are 3.45% lower than the RBI repo rate on savings accounts with end-of-day balances between Rs. 2 crore and Rs. 5 crore, 3.40% lower than the RBI repo rate on balances between Rs. 5 lakh and Rs. 50 lakh, 2.75% lower than the RBI repo rate on balances between Rs. 50 lakh and Rs. 2 crore, and 2.50% lower than the RBI repo rate for balances of Rs. 2 crore and above.
Federal Bank is now promising an interest rate on savings accounts with end-of-day balances between Rs. 5 crore and less than Rs. 50 crore that is 3.45% lower than the RBI repo rate for balances up to and including Rs. 1 lakh and 1.00% lower than the RBI repo rate for the remaining balance above Rs. 1 lakh. Federal Bank customers will now get interest rates that are 3.45% less than the RBI repo rate for balances up to and including Rs. 1 lakh and 0.50% less than the RBI repo rate for the remaining amount over Rs. 1 lakh on savings accounts with end-of-day balances of Rs. 50 crore and above.
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