The latest repo rate cut has prompted Federal Bank to update its interest rates on Resident Term Deposits, effective April 17, 2025. These changes reflect shifting market trends and are tailored to benefit both regular depositors and senior citizens.
Revised Interest Rates at a Glance
The updated rates apply to deposits under Rs 3 crore and vary based on tenure and depositor category. Here’s a quick breakdown:
| Tenure | General Public | Senior Citizens |
|---|---|---|
| 7 – 29 days | 3.00% | 3.50% |
| 30 – 45 days | 3.50% | 4.00% |
| 46 – 90 days | 4.50% | 5.00% |
| 91 – 180 days | 5.00% | 5.50% |
| 181 – 270 days | 6.00% | 6.50% |
| 271 days – | 6.50% | 7.00% |
| 1 year | 6.85% | 7.35% |
| Above 1 year – 443 days | 7.00% | 7.50% |
| 444 days (special) | 7.30% | 7.80% |
| 445 days – 5 years | 7.00% | 7.50% |
| 5 years – 10 years | 6.50% | 7.00% |
How Market Trends Are Influencing Rates
This move by Federal Bank reflects a strategic response to changing economic signals. The recent repo rate adjustment has opened the door for more competitive deposit options, aligning with a broader bank rally. Meanwhile, investors keeping an eye on Nifty movements may also notice parallel gains in the fixed income space, creating opportunities for both short- and long-term savers.
Annuity deposit rates have also been revised accordingly, with the changes effective from the same date. These rate updates aim to strike a balance between profitability for the bank and attractive yields for depositors, especially in a landscape where auto stocks and financials continue to influence overall market sentiment.
What’s Next for Depositors?
With these revised rates, Federal Bank is not just responding to policy changes—it’s proactively addressing the diverse needs of its customer base. Whether you’re a cautious saver or a senior citizen looking for better returns, these new deposit rates offer a solid opportunity to make the most of current economic conditions.