2024’s Bank FD Interest Rate Updates: A Comprehensive Guide

In the wake of the new year, the financial landscape has witnessed significant changes, especially in the banking sector’s Fixed Deposit (FD) interest rates. Several banks have made notable adjustments to their FD rates, reflecting the dynamic nature of the financial markets. This article delves into the revised FD rates of prominent banks like Punjab National Bank (PNB), Federal Bank, IDBI Bank, and Bank of Baroda, offering a detailed analysis for potential investors and existing account holders.

Punjab National Bank (PNB) Enhances FD Rates

PNB has taken a proactive stance in revising its FD interest rates twice in January 2024. The bank has made an impressive increase of 80 basis points on certain tenure FDs. Specifically, the interest rate for a 300-day FD has been hiked from 6.25% to 7.05% for general customers. Senior and super senior citizens are now being offered rates of 7.55% and 7.85%, respectively. Post-revision, regular customers can avail interest rates ranging from 3.50% to 7.25%, while senior citizens are offered rates from 4% to 7.75%.

Federal Bank Raises the Bar for FD Returns

Federal Bank has made an attractive move by increasing the interest rate for a 500-day FD to 7.75% for general customers, and up to 8.25% for senior citizens. In a noteworthy update, senior citizens can now earn a maximum return of 8.40% for the same tenure. The bank has also upped the interest rates for non-withdrawable FDs between one crore to two crore rupees, setting it at 7.90%. Post these changes, Federal Bank’s FD interest rates for regular customers range from 3% to 7.75% for tenures between 7 days and 10 years, while senior citizens can enjoy rates between 3.50% and 8.25%.

IDBI Bank Adjusts Interest Rates for FDs

IDBI Bank, too, has revised its FD interest rates. The new rates, effective from 17th January 2024, offer regular customers interest ranging from 3% to 7% for tenures between 7 days and 10 years. Senior citizens can avail interest rates between 3.50% and 7.50% across various tenures, making it a competitive choice for those looking for safe and steady returns.

Bank of Baroda Introduces Special Short-Term FDs

Bank of Baroda has launched a special short-term FD under the name ‘bob360’, effective from 15th January 2024. This new offering caters to deposits less than two crore rupees and promises higher interest rates. The ‘bob360’ FD provides a 7.10% interest rate to general customers and a higher 7.60% rate to senior citizens. Additionally, the bank has revised its regular FD interest rates, now offering 4.45% to 7.25% for normal customers and an additional 50 basis points for senior citizens, applicable across various tenures ranging from 7 days to 10 years.