The main fixed deposit update you should know: new offering and rate adjustment – CNBC TV18

In recent months, banks have introduced new fixed deposits (FD) products and revised interest rates to meet their customers’ needs. These updates provide a combination of high returns, flexibility and targeted options for specific customer segments.

There is a look at the latest changes in FD space here.

Bank of Baroda launched Bob Liquid Fixed Deposit

Bank of Baroda has introduced Bob Liquid Fixed Deposit, which provides a balance of high returns and flexible liquidity.

This FD allows customers to do partial withdrawal without closing the entire deposit.

The main features of Bob Liquid FD include:

• A minimum deposit of 5,000, with an increase of ₹ 1,000.
• Period from 12 to 60 months.
• Interest rates based on prevalent FD rates.
• Partial withdrawal was allowed ahead of time, after 12 months there was no fine for an amount of up to ₹ 5 lakh.

IDBI Bank launched Chiranjeevi-Supreme Senior Citizen FD

IDBI Bank has launched IDBI Chiranjeevi-Super Senior Citizen FD, especially designed for individuals aged 80 and above.

This FD provides high interest rate, which provides additional 65 basis points (BPS) at standard FD rates and 15 bPS at senior civilian rates.

The main features of FD include:

• 8.05% PA for 555-day term.
• 7.90% PA for 375 days.
• 8.00% PA for 444 days.
• 7.85% PA for 700 days.

Federal bank modifies FD rates

Federal Bank has revised its FD interest rates, which is effective from January 10, 2025. Now the highest rate to be given is at 8% PA for the tenure of 444-day, with a normal rate of 7.5% and the senior civilian rate is 8%.

Even small changes in interest rates may have an impact on returns. For example, the 50 base point high interest rate at ₹ 5 lakh FD can result in an additional ₹ 12,500 in a period of five years.