The rate cut by 50 basis points (bps) by the US Federal Reserve this month brought a surge in the Indian market, pushing the benchmark indices to a new high on September 19, 2024. According to a State Bank of India report released this month, “The RBI will decide on interest rate cuts based on what suits the Indian economy.” The report said, “We don’t anticipate any rate action by RBI in calendar 2024. An early 2025 rate cut (February) looks like the best bet. We still believe that liquidity challenges will remain for the banking sector with government cash balances progressively moving out of the banking system.”

So, Indian investors still have time to book their fixed deposits (FD) at current rates for the long term if they look for a guaranteed return. Repo rates affect the bank deposit and lending rates, and once the rate is cut, it would also impact the FD rates. This week, Federal Bank revised its FD rates, and senior citizens who get an additional 50 per cent on the bank’s FD can avail of the benefit if they require a guaranteed return element in their portfolio. Here are the interest rate details.

Also Read: Health Insurance Sublimits: How They Work And What You Need To Know

Federal Bank:

This private sector bank revised its FD interest rates on September 16, 2024. It offers 50 bps additional interest to senior citizens across FD tenures from seven days to less than five years. According to the bank’s website, seniors can avail of a 65 bps additional interest for five years and above. Here are the rates for seniors:

· 3.50 per cent for seven days to 29 days

· 3.75 per cent for 30 days to 45 days

· 4.50 per cent for 46 days to 60 days

· 5.25 per cent for 61 days to 119 days

· 5.50 per cent for 120 days to 180 days

· 7.00 per cent for 181 days

· 6.75 per cent for 182 days to less than one year

· 7.30 per cent for one year to 399 days

· 7.85 per cent for 400 days

· 7.55 per cent for 401 days to 776 days

· 7.90 per cent for 777 days

· 7.55 per cent for 778 days to less than three years

· 7.50 per cent for three years to less than 50 months

· 7.90 per cent for 50 Months

· 7.50 per cent for over 50 months to less than five years.

*The interest rate for the general public will be 0.50 per cent less than the above rates.

Also Read: Should You Invest In NPS Vatsalya? 5 Things To Consider

· 7.25 per cent for five years to 10 years for seniors.

The 7.25 per cent interest over 10 years is an annualised return of 10.51 per cent for senior citizens. For the general public, the bank offers 6.60 per cent for the same tenure, which means an annualised return of 9.24 per cent if FD is kept until maturity, which is 10 years. All these rates are for FDs of less than Rs 3 crore.