The premature withdrawal penalty structure for rupee fixed deposits has been revised by private sector lender Federal Bank. According to the bank’s official website, the new penalty fee will be effective from October 21, 2022. Premature withdrawal from newly opened or renewed Rupee Fixed Deposit is subject to new penalty charges. For fixed deposits under Rs. 2 crores, there is no penalty for premature withdrawal if the deposit period is up to and including 15 days; However, if the deposit period exceeds 15 days, the bank levies a 1% penalty fee.
Whereas the bank imposes a penalty of 15 days on premature withdrawal of fixed deposits and 1% on single deposits for a period exceeding 15 days. 2 crore and above. For smart deposit scheme, the bank does not levy any penalty on premature withdrawal of fixed deposits up to 90 days and included in this, however, if the deposit period is more than 90 days, the bank levies 1% penalty.
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Federal Bank has mentioned on its website that “the period for which the deposit is retained with the bank, irrespective of the stipulated period. Deposits opened for a period of 2222 days shall be treated as green deposits and the use of these deposits This will be done exclusively for financing the green loan portfolio.”
As of Q2 FY23, Federal Bank’s standalone net profit improved by about 53% YoY from 703.7 crore 460.3 crore in Q2 FY22. Net income interest (NII) for the lender climbed nearly 19% year-over-year 1,479.4 Cr to 1,762 crore was registered in the same period last year. On the other hand, its net interest margin (NIM) increased to 3.30%. The Gross Non-Performing Assets (NPA) in Federal Bank stood at 2.46% as against 2.69% in the previous quarter. However, its net NPAs declined quarter-on-quarter (QoQ) to 0.78% from 0.94%. According to the bank, its gross NPAs, 2.46%, were the lowest in 24 quarters, while its net NPAs were the lowest in 34 quarters.
Federal Bank Fixed Deposit interest rates were last updated on September 27, 2022. The bank is now offering interest rates over 2222 days on deposits maturing in 7 days which ranges from 3.00% to 6.00% and 3.50% for general public. Up to 6.65% for senior citizens. Deposits maturing in 700 days with Federal Bank will earn a maximum interest rate of 7% for general public and 7.50% for senior citizens.
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