Federal Bank has mentioned on its website that “As the interest rates are linked to Repo rates, the interest rates will change as and when the Repo Rate gets revised by RBI on a T+1 basis."
Federal Bank Savings Account Interest Rates
On savings bank deposits of less than ₹5 crores, the applicable interest rate is 2.15 per cent less than the RBI's repo rate of 4.9 per cent, implying that the interest rate will be 2.75 per cent. On savings account balances of ₹5 Crores and above, the applicable interest rate is 2.15 per cent below the RBI's repo rate for amounts up to and including ₹1 lakh, and 0.90 per cent below the RBI's repo rate for amounts above ₹1 lakh. These rates will be calculated based on daily end-of-day balances and paid quarterly to the savings account holders of the bank.
“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," the bank has mentioned on its website.
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Savings account customers will be pleased to hear that Kotak Mahindra Bank has increased interest rates on savings accounts, which will take effect on June 13, 2022. Saving account deposits up to ₹50 lakh will enjoy a 3.5 per cent p.a. interest rate, but daily balances in savings accounts above ₹50 lakh will pay 50 basis points higher interest rate of 4 per cent p.a. from the previous rate of 3.5 per cent p.a. Interest rates are currently on the uptick phase after the RBI raised the repo rate at its June MPC meeting. Banks may announce further interest rate hikes on loan and deposit products shortly, but in the meanwhile, lenders such as PSB, Central Bank of India, Indian Overseas Bank, Karnataka Bank, and RBL Bank have raised interest rates on fixed deposits as a result of the repo rate hike.
