Latest Federal Bank FD Interest Rate April 2023
Federal Bank FD rates range from 3% to 7.25% for investments up to ₹2 crore. Senior citizens get preferential interest rates typically of 50 basis points over and above the applicable normal rates for deposits amounting to less than ₹2 crore. However, Federal Bank Deposit Plus without premature withdrawal facility is offering maximum FD rates of 7.5% to 8% for tenures between 1 year and 5 years.
Keep reading to get a detailed idea about Federal Bank fixed deposit interest rate as well as the features and benefits of its wide range of FD products.
Federal Bank FD Interest Rates 2023 Highlights
| Interest Rate | 3.00% to 8% |
| Tenure | 7 days – 10 years |
| Minimum Deposit | ₹1000 |
| Maximum Deposit | No Limit |
| Lock-in Period | 7 days (5 years for Tax Saving Deposit)As per tenure for Deposit Plus |
How to Calculate Federal Bank FD Interest Rate?
If you want to calculate interest earned on Federal Bank fixed deposits, you can do so either by using the simple interest method or the compound interest method.
Federal Bank FD Interest Rate – Simple Interest Calculation
The simple interest method lets you calculate the amount of interest you will receive on your sum at a given rate of interest and tenure. Mentioned below is the formula you can use to calculate simple interest:
Simple Interest = (P*R*T)/100,
In this formula,
- P = Principal Amount
- R = Rate of Interest in percentage
- T = Tenure
Here is an example for a better understanding of the simple interest formula:
Let’s say you have invested ₹6 lakh at 4% per annum interest rate for a tenure of 2 years. Here, P = ₹6,00,000, R = 4% and T = 2 years.
Simple Interest = (6,00,000*4*2)/100= ₹48,000
Maturity Value = Principal Amount + Simple Interest
= ₹6,00,000 + ₹48,000
Therefore, your fixed deposit scheme will accrue ₹6,48,000 at the time of maturity.
Federal Bank FD Interest Rate – Compound Interest Calculation
The other method for calculating interest is the compound interest method. In simple terms, compound interest is interest that you earn on the interest accrued. With a fixed deposit scheme that earns compound interest, you will earn interest on the initial principal amount and then this total amount will again earn interest; this will go on throughout the entire tenure.
Below is the formula applicable for calculation of maturity amount:
A = P (1+r/n) ^ (n * t)
In this formula,
- A stands for maturity amount
- P stands for principal amount invested
- r stands for rate of interest
- N stands for number of compounding in a year
- t stands for number of years
To understand the compound interest calculation better, let’s take an example here. Let’s say you have deposited ₹6 lakh at 4% per annum interest rate for a tenure of 2 years. Therefore, P = ₹6,00,000, r = 4%, n = 4 (compounded once every quarter), t = 2 years.
Maturity Amount = 6,00,000 (1+0.04/4) ^ (4*2)
= ₹6,49,714.02
Therefore, Compound Interest = Maturity Amount – Principal
= ₹6,49,714.02 – ₹6,00,000 = ₹49,714.02
It is quite clear that the calculation process is extremely complicated if attempted manually. In order to ease the entire process and save your time, you can use the Navi FD calculator. You simply have to enter the principal amount, rate of interest, and tenure and the calculator would show you total returns instantly!
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Factors that Can Affect Federal Bank Fixed Deposit Rate
If you are looking for a risk-free investment option, then FD might be a great choice. However, when you are comparing interest rates of different banks you might find a slight difference. Let us take a look at some of the reasons responsible for differences in FD rates in Federal Bank:
1. Your Age
Age is a crucial factor on which the interest rate depends. If you are above the age of 60 years, Federal Bank offers an additional interest rate of 50 basis points than what the general public gets.
2. Tenure of FD
Banks generally offer higher interest rates for deposits with a longer tenure than a shorter tenure. For example, if you book a Federal Bank FD of ₹1 lakh for 7 days, you’ll get an interest rate of 3%. The same would be 7.25% if your FD tenure is 15 months.
3. Repo Rate Fluctuation
Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks. Therefore, interest rates offered on FDs are highly influenced by the repo rate. In case of rising repo rate, bank FD interest rates generally increase, and vice versa.
4. Demand and Supply Conditions
In general, when there is high demand for money in the economy, interest rates offered by banks on FD schemes tend to be higher. However, in case there is a consistently high supply of money but demand is lesser than that, interest rate of bank FD witnesses a downfall.
Federal Bank FD Interest Rate for General Public
With Federal Bank deposit accounts, you can choose to invest different amounts for different tenures. The interest that you will earn will depend on the amount that you invest and the tenure for which you are investing. For the general public aged below 60, the bank offers up to 7.25% interest for investments below ₹2 crore.
However, if you invest above ₹2 crore, you can earn an interest up to 7.55%. Following are two tables illustrating the Federal Bank fixed deposit rates applicable for investments below ₹2 crore and above ₹2 crore:
Federal Bank FD Interest on Deposit Below ₹2 Crore
| Tenure | Interest on Deposit Below ₹2 Crore |
| 7 days to 29 days | 3.00% |
| 30 days to 45 days | 3.25% |
| 46 days to 60 days | 4.00% |
| 61 days to 90 days | 4.25% |
| 91 days to 119 days | 4.50% |
| 120 days to 180 days | 4.75% |
| 181 days to 270 days | 5.75% |
| 271 days to less than 1 year | 6.00% |
| 1 year to less than 15 months | 6.80% |
| 15 months to 2 years | 7.25% |
| Above 2 years to less than 3 years | 6.75% |
| 3 years to less than 5 years | 6.60% |
| 5 years to 2221 days | 6.60% |
| 2222 days | 6.60% |
| 2223 days and above | 6.60% |
Federal Bank FD Interest on Deposit Above ₹2 Crore
| Tenure | Interest on Deposits of ₹2 Crore and Above |
| 7 days to 14 days | 4.65% |
| 15 days to 29 days | 5.00% to 5.10% |
| 30 days to 45 days | 5.50% to 5.60% |
| 46 days to 60 days | 6.00% |
| 61 days to 90 days | 6.25% |
| 91 days to 120 days | 7.00% |
| 121 days to 180 days | 7.25% |
| 181 days to 270 days | 7.50% |
| 271 days to less than 1 year | 7.60% |
| 1 year | 7.60% |
| 1 year 1 day to 15 months | 7.65% |
| Above 15 months to 18 months | 7.50% |
| Above 18 months to 2 years | 7.25% |
| Above 2 years to 3 years | 6.75% |
| Above 3 years to 5 years | 6.75% |
| Above 5 years | 6.50% |
Also Read
Federal Bank FD Interest Rate for Senior Citizens
By investing in Federal Bank FD schemes, senior citizens can avail of an additional interest rate of 0.50%. However, note that the benefits of additional rates of interest are applicable only for investments below ₹2 crore. Here are the Federal Bank FD interest rates for senior citizens based on tenure applicable to investments up to ₹2 crore:
| Tenure | Interest on Deposit Below ₹2 Crore |
| 7 days to 29 days | 3.50% |
| 30 days to 45 days | 3.75% |
| 46 days to 60 days | 4.50% |
| 61 days to 90 days | 4.75% |
| 91 days to 119 days | 5.00% |
| 120 days to 180 days | 5.25% |
| 181 days to 270 days | 6.25% |
| 271 days to less than 1 year | 6.50% |
| 1 year to less than 15 months | 7.30% |
| 15 months to 2 years | 7.75% |
| Above 2 years to less than 3 years | 7.25% |
| 3 years to less than 5 years | 7.10% |
| 5 years to 2221 days | 7.25% |
| 2222 days | 7.25% |
| 2223 days and above | 7.25% |
Federal Bank FD Interest Rate for NRI
Federal bank offers fixed deposit schemes for Non-resident Indians as well. There are a total of four types of FD schemes for NRIs available at Federal Bank, which have been mentioned below:
- Federal Bank NRO Fixed Deposits
- Federal Bank NRE Fixed Deposits
- Federal Bank FCNR (B) Deposits
- Federal Bank RFC Deposits
1. Federal Bank NRO Interest Rate
NRO or Non-Resident Ordinary is a type of account that lets Non-resident Indians manage their earnings in India like pensions, dividends, rents, etc. NRIs can invest in both Indian and foreign currency; however, while withdrawing, they will only receive funds in Indian currency.
With the Federal Bank, NRIs can also transfer money from NRO deposit account to NRE deposit account. Premature withdrawal facility is also available and you will get the interest according to the rate applicable for the completed tenure without having to pay any penalty for it. Here are the Federal Bank FD interest rates for NRO accounts:
Federal Bank NRO Interest Rate on Deposit Below ₹2 Crore
| Tenure | Interest on Deposit Below ₹2 Crore |
| 7 days to 29 days | 3.00% |
| 30 days to 45 days | 3.25% |
| 46 days to 60 days | 4.00% |
| 61 days to 90 days | 4.25% |
| 91 days to 119 days | 4.50% |
| 120 days to 180 days | 4.75% |
| 181 days to 270 days | 5.75% |
| 271 days to less than 1 year | 6.00% |
| 1 year to less than 15 months | 6.80% |
| 15 months to 2 years | 7.25% |
| Above 2 years to less than 3 years | 6.75% |
| 3 years to less than 5 years | 6.60% |
| 5 years to 2221 days | 6.60% |
| 2222 days | 6.60% |
| 2223 days and above | 6.60% |
Federal Bank NRO Interest Rate on Deposit Above ₹2 Crore
| Tenure | Interest on Deposits of ₹2 Crore and Above |
| 7 days to 14 days | 4.65% |
| 15 days to 29 days | 5.00% to 5.10% |
| 30 days to 45 days | 5.50% to 5.60% |
| 46 days to 60 days | 6.00% |
| 61 days to 90 days | 6.25% |
| 91 days to 120 days | 7.00% |
| 121 days to 180 days | 7.25% |
| 181 days to 270 days | 7.50% |
| 271 days to less than 1 year | 7.60% |
| 1 year | 7.60% |
| 1 year 1 day to 15 months | 7.65% |
| Above 15 months to 18 months | 7.50% |
| Above 18 months to 2 years | 7.25% |
| Above 2 years to 3 years | 6.75% |
| Above 3 years to 5 years | 6.75% |
| Above 5 years | 6.50% |
2. Federal Bank NRE FD Interest Rate
Non-resident External or NRE account is a type of deposit where NRIs can deposit in foreign currencies and convert it into Indian rupees. It is basically a type of term deposit opened for transfer of foreign earnings. By investing in Federal Bank’s NRE FD scheme, you can earn up to 7.25% interest. Here are the Federal Bank NRE FD rates:
| Tenure | Interest on Deposits Below ₹2 Crore |
| 1 year to less than 15 months | 6.80% |
| 15 months to 2 years | 7.25% |
| Above 2 years to less than 3 years | 6.75% |
| 3 years to 2221 days | 6.60% |
| 2222 days | 6.60% |
| 2223 days and above | 6.60% |
3. Federal Bank FCNR Interest Rate
FCNR or Foreign Currency Non-Residential account is a type of fixed deposit scheme that allows NRIs, People of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) to hold their money in India in foreign currency. This protects their money from the rapid fluctuations of currency exchange rates.
Federal Bank offers NRIs to open FCNR accounts in US Dollars, Pound Sterling, Euro, Japanese Yes, Canadian Dollars, Australian Dollars, Swiss Francs, New Zealand Dollars, Singapore Dollars and Hong Kong Dollars. Here are the FD interest rates for FCNR accounts:
| Currency | USD | GBP | ||
| Tenure | Interest Rate on Deposit Below 2.50L | Interest Rate on Deposit Above 2.5L | Interest Rate on Deposit Below 2.5L | Interest Rate on Deposit Above 2.5L |
| 1 year to less than 18 months | 5.25% | 5.50% | 4.00% | 4.25% |
| 18 months to less than 2 years | 5.25% | 5.70% | 4.00% | 4.75% |
| 2 years to less than 3 years | 4.65% | 5.25% | 3.75% | 4.00% |
| 3 years to less than 4 years | 4.50% | 4.25% | 3.75% | 3.75% |
| 4 years to less than 5 years | 4.00% | 3.85% | 3.50% | 3.50% |
| 5 years only | 3.90% | 3.85% | 3.00% | 3.00% |
*Note that rates are subject to change without prior notice.
| Tenure | Interest rates as per Currency | |||||||
| EUR | YEN | CAD | AUD | CHF | NZD | SGD | HKD | |
| 1 year to less than 2 years | 1.00% | 0.20% | 3.50% | 3.50% | 0.05% | 0.05% | 0.42% | 0.33% |
| 2 years to less than 3 years | 1.00% | 0.20% | 3.50% | 3.50% | NA | NA | 0.84% | 0.72% |
| 3 years to less than 4 years | 1.00% | 0.20% | 3.25% | 3.00% | NA | NA | 0.78% | 0.74% |
| 4 years to less than 5 years | 0.50% | 0.10% | 3.25% | 3.25% | NA | NA | 0.78% | 0.65% |
| 5 years only | 0.50% | 0.10% | 3.25% | 3.50% | NA | NA | 0.80% | 0.57% |
4. Federal Bank RFC Interest Rate
RFC or Resident Foreign Currency account and is for Non-resident Indians who are planning to return to India. This account lets them deposit their foreign currency earnings in India and convert them to Indian currency at a later date. With a Federal Bank RFC account, you can convert your money when exchange rates are preferable for you.
Federal bank accepts investments in US Dollars, Pound Sterling, Euro, Japanese Yes, Canadian Dollars, Australian Dollars, Swiss Francs, New Zealand Dollars, Singapore Dollars and Hong Kong Dollars. Here are the Federal Bank deposit rates applicable to RFC deposit accounts:
| Tenure | Interest Rates Based on Currency | |||||||||
| USD | GBP | EURO | YEN | CAD | AUD | CHF | NZD | SGD | HKD | |
| 6 months to less than 1 year | 5.25% | 4.00% | 1.00% | 0.20% | 3.50% | 3.50% | 0.05% | 0.05% | 0.42% | 0.33% |
| 1 year to less than 2 years | 5.25% | 4.00% | 1.00% | 0.20% | 3.50% | 3.50% | 0.05% | 0.05% | 0.42% | 0.33% |
| 2 years to less than 3 years | 4.65% | 3.75% | 1.00% | 0.20% | 3.50% | 3.50% | NA | NA | 0.84% | 0.72% |
| 3 years only | 4.50% | 3.75% | 1.00% | 0.20% | 3.25% | 3.50% | NA | NA | 0.78% | 0.74% |
Federal Bank Vs Other Bank’s FD Interest Rates
Following is a table comparing the tenures and interest rates offered by different private and public banks in India. The common threshold considered in case of this table is ₹2 crore. Interest rates applicable to senior citizens have also been taken into consideration.
| Bank Name | Tenure | Interest Rate |
| Federal Bank | 7 days to 10 years | From 3.00% to 7.75% p.a. |
| Axis Bank | 7 days to 10 years | From 3.50% to 8.01% p.a. |
| Bank of India | 7 days to 10 years | From 3.00% to 7.15% (additional 0.90% for Super Seniors) p.a. |
| Bandhan Bank | 7 days to 10 years | From 3.00% to 8.50% p.a. |
| ICICI Bank | 7 days to 10 years | From 3.00% to 7.60% p.a. |
| HDFC Bank | 7 days to 10 years | From 3.00% to 7.75% p.a. |
| Kotak Mahindra Bank | 7 days to 10 years | From 2.75% to 7.70% p.a. |
| Punjab and Sind Bank | 7 days to 10 years | From 2.80% to 7.60% p.a. |
| IDFC First Bank | 7 days to 10 years | From 3.50% to 8.25% p.a. |
| DBS Bank | 7 days to 5 years and above | From 2.5% to 8% p.a. |
| Yes Bank | 7 days to 10 years | From 3.25% to 8.00% p.a. |
| IndusInd Bank | 7 days to 10 years | From 3.50% to 8.25% p.a. |
| IDBI Bank | 7 days to 20 years | From 3.00% to 7.25% p.a. |
| RBL Bank | 7 days to 20 years | From 3.50% to 8.30% p.a. |
| Indian Overseas Bank | 7 days to 10 years | From 4.30% to 7.75% p.a. |
| HSBC | 7 days to 5 years | From 2.85% to 8.00% p.a. |
| Sundaram Finance | 12 months to 36 months | From 7.45% to 8.25% p.a. |
| State Bank of India | 7 days to 10 years | From 3.00% to 7.50% p.a. |
| UCO Bank | 7 days to 6 years and above | 4% to 7.50% |
| Indian Bank | 7 days to 5 years | From 2.80% to 7.90% p.a. |
| Central Bank of India | 7 days to 10 years | From 4.00% to 7.25% p.a. |
| Union Bank of India | 7 days to 10 years | From 3.00% to 8.05% p.a. |
| Bank of India | 7 days to 10 years | From 3.00% to 8.05% p.a. |
| Canara Bank | 7 days to 10 years | From 4.00% to 7.75% p.a. |
| Punjab National Bank | 7 days to 10 years | From 3.50% to 7.75% p.a. |
| Bank of Baroda | 7 days to 10 years | From 3.00% to 7.55% p.a. |
Features and Benefits of Federal Bank Fixed Deposit
Here are some of the features and benefits of opting for Federal Bank fixed deposit policy:
- You can start investing in most fixed deposit schemes with just ₹1000 and there is no upper limit for maximum investment.
- It is up to you to decide specific frequencies for earning interest on your FD – monthly, quarterly or annually.
- Auto renewal facility is available.
- Automatic credit of interest and principal to your account on the date of maturity is also available.
- You can also avail a loan against FD.
- Nomination facility is also available.
- You can start investing in fixed deposits for a tenure of 7 days up to a maximum of 10 years.
Also Read
Different Types of Federal Bank FD Schemes
Federal Bank offers a wide range of fixed deposit schemes for Indian residents as well as NRIs. Every scheme is designed for offering benefits to different types of investors. Let us take a look at the list of different types of schemes offered by Federal Bank:
- Federal Bank Fixed Deposit
- Federal Bank Cash Certificate
- Federal Bank Green Deposits
- Federal Tax Savings Deposit
- Federal Bank Deposit Plus (Non-callable Deposit)
- Federal Bank NRO Fixed Deposit
- Federal Bank NRE Fixed Deposit
- Federal Bank NRE Term Deposit Plus
- Federal Bank FCNR (B) Deposits
- Federal Bank RFC Deposits
Please note that the interest rates mentioned below include the interest rates offered to senior citizens for investment amounts of up to ₹2 crore.
1. Federal Bank Fixed Deposit
- Minimum Deposit: ₹1000
- Maximum Deposit: No ceiling
- Tenure: 7 days to 10 years
- Interest Rate: 3.00% to 7.75%
- Eligibility Criteria: Indian residents
2. Federal Bank Cash Certificate
- Minimum Deposit: ₹1000
- Maximum Deposit: No ceiling
- Tenure: 6 months to 10 years
- Interest Rate: 5.75% to 7.75%
- Eligibility Criteria: Indian residents
3. Federal Bank Green Deposits
- Minimum Deposit: ₹1000
- Maximum Deposit: No ceiling
- Tenure: 2222 days
- Interest Rate: 6.60% to 7.25%
- Eligibility Criteria: Indian residents
4. Federal Tax Savings Deposit
- Minimum Deposit: ₹100 (thereof in multiples of 100)
- Maximum Deposit: ₹1,50,000
- Tenure: 5 year lock in period
- Interest Rate: 6.60% to 7.25%
- Eligibility Criteria: Indian residents
5. Federal Bank Deposit Plus (Non-callable Deposit)
- Minimum Deposit: ₹15,00,001
- Maximum Deposit: No ceiling
- Tenure: Minimum of 12 months
- Interest Rate: 6.90% to 8%
- Eligibility Criteria: Indian residents
6. Federal Bank NRO Fixed Deposit
- Minimum Deposit: ₹1000
- Maximum Deposit: No ceiling
- Tenure: 7 days to 10 years
- Interest Rate: 3.00% to 7.25%
- Eligibility Criteria: Non-resident Indians
7. Federal Bank NRE Fixed Deposit
- Minimum Deposit: ₹500
- Maximum Deposit: No ceiling
- Tenure: 1 year to 10 years
- Interest Rate: 6.60% to 7.25%
- Eligibility Criteria: Non-resident Indians
8. Federal Bank NRE Term Deposit Plus
- Minimum Deposit: ₹15,00,001
- Maximum Deposit: No ceiling
- Tenure: 1 year to 5 years
- Interest Rate: 6.60% to 7.25% + mark up as decided by the Bank.
- Eligibility Criteria: Non-resident Indians
9. Federal Bank FCNR (B) Deposits
- Minimum Deposit: $500 or equivalent
- Maximum Deposit: No ceiling
- Tenure: 1 year to 5 years
- Interest Rate: 3.85% to 5.70% (USD)
- Eligibility Criteria: Non-resident Indians
10. Federal Bank RFC Deposits
- Minimum Deposit: 1000 units of respective currency and 100,000 units for JPY
- Maximum Deposits: No ceiling
- Tenure: 6 months to 3 years
- Interest Rate: 4.5% to 5.25% (USD)
- Eligibility Criteria: Non-resident Indians
How to Invest in a Federal Bank Fixed Deposit?
You can open a Federal Bank fixed deposit either online or offline. In case you have the FEDNet – Internet Banking account or FedMobile banking application, you can open a fixed deposit account online.
If you do not have the Internet banking facility activated, you have to visit your nearest Federal bank branch for opening the deposit. Following are the steps that you can follow if you wish to open a fixed deposit using FedMobile:
- Step 1: Log in to FedMobile app and choose the option ‘Investments’ which is present in the bottom bar of the Home Screen
- Step 2: Go to ‘Bank Deposits’ and select ‘Fixed Deposit’ and proceed
- Step 3: You can click on ‘Interest Rates’ to get an idea about the interest rates offered by the bank for different tenures
- Step 4: Enter the amount you want to invest. Choose the type of scheme you want to opt for and the tenure
- Step 5: Select your debit account and provide your MPIN to complete the procedure for opening a fixed deposit
Here are the steps for opening a fixed deposit using Internet banking:
- Step 1: Visit the official website of Federal Bank
- Step 2: Select the ‘Net Banking’ option
- Step 3: A new page will open. Select ‘Personal Banking’
- Step 4: Click on ‘Continue to Login’
- Step 5: Once redirected, enter your user ID, password and verification code
- Step 6: Click on ‘Log In’
- Step 7: Once the main page opens, choose the type of FD account you want to open under the deposit section. After this, you need to choose the tenure and the principal amount of the FD
If you wish to open an FD account offline at Federal Bank, you can visit the nearest Federal Bank branch and fill up an application form. Submit your application form along with the relevant documents.
Documents Required to Open Federal Bank FD
Here is the list of documents you will require to open a fixed deposit account with Federal Bank:
- Proof of identity: PAN card, Aadhaar card, Passport, Driving licence and any other documents as per KYC norms
- Proof of age: PAN card, birth certificate, matriculation certificate and any other documents permitted as per KYC norms
- Proof of address: Telephone bill, Aadhaar card, Electricity bill and any other document as per KYC norms
- Photographs of depositor
In case you do not have a PAN card, you need to fill up Form No. 60 or 61 in case your deposit is above ₹50,000.
Eligibility to Open Federal Bank FD
Let us take a look at the list of people who are eligible to open a Federal Bank FD account:
- Indian resident and NRIs above the age of 18
- Joint account for individuals with other individuals
- A guardian on behalf of a minor
- Clubs/Associations
- Hindu Undivided Family (HUF)
- Joint stock companies
- Firms
- Sole proprietary concerns
- Any other entity not prohibited by RBI
Premature Withdrawal on Federal Bank FDs
Federal Bank rupee term deposits of less than ₹2 crore carry no premature withdrawal penalty for up to 15 days. But a 1% penal charge would be levied if an FD is prematurely withdrawn after 15 days. For deposits of more than ₹2 crore, a penal charge of 1% would be levied for all premature withdrawals.
Taxation on Federal Bank FD
- As per Income Tax Act of 1961, interest that you earn on FD is treated as ‘income from other sources’ and, therefore, is fully taxable. The interest earned is clubbed with gross annual income. Your gross total income will be taxed as per applicable tax slab.
- In case your interest income from all your FDs is more than ₹40,000 in a year, 10% tax will be deducted at source by the bank. For senior citizens, the exemption limit is ₹50,000. Please note that if you do not link your PAN card to your FD, the TDS rate will be 20%.
- If you are exempt from taxation on FD interest, you need to instruct the bank not to deduct any taxes by submitting form 15G/H depending on your age and income. However, in case you do not have a PAN card, form 15G/H as well as any other exemption certificates will be invalid.
With Federal Tax Savings Deposit, you can avail a tax deduction of ₹1,50,000 as per Section 80C of Income Tax Act. If you opt for a joint account, this benefit will only be applicable to the first account holder. However, submission of a copy of PAN card is mandatory for investing in this scheme. This scheme has a lock-in period of 5 years before which you cannot withdraw any sum.
Loan Against Federal Bank FD Scheme
Loan against fixed deposit facility will work wonders in case you are in need of money urgently but do not want to take the stress of opting for a personal loan. Federal Bank offers loans against your deposit to meet any unforeseen personal expenses. Here are the key characteristics of loan against Federal Bank FD scheme:
- You can avail a loan of up to 90% of the value of your fixed deposit.
- There are neither any penal charges nor processing fee applicable.
- Loan is only granted for those deposits which are not in the name of any minor or free from any type of restraint or encumbrance.
- You can also avail loans against deposits which are maintained in any other branch. In this case, deposit certificates or receipts are to be submitted to the branch which will disburse the loan.
- You can avail a loan against FD with a missed call or by sending an SMS.
Final Word
Federal Bank FD rates are some of the highest available rates in the country right now, especially for senior citizens. Fixed deposits are popular investment vehicles owing to their assured returns; however, the tax on returns could lower the real rate of returns. As such, before starting any investment, ensure it’s in line with your financial goals, liquidity requirements and risk tolerance.
FAQs
With Federal Bank, there are no processing charges for loans against FDs. You can also get loans against deposits maintained with other branches
To open a loan against deposit through SMS, you need to type an SMS in the format INSTANT LAD and send it to 8546995577 from your registered mobile number. You will receive acknowledgement along with a link via SMS.
Click this link and you will be redirected to the BYOM portal. Verify by typing in the OTP sent to your mobile number. Check loan details and submit the request to get the loan amount.
For opening an RFC account, you need to submit a copy of all pages of passport and expired visa which acts as proof of your NRI or PIO status. You would also need to submit an RFC declaration that is duly filled and signed. In case you do not have an expired visa, you will need to submit either a copy of FCNR deposit receipt or NRI bank account statement or cancelled NRI cheque.
In case you invest in a Federal Tax Savings Deposit, you will be able to transfer this scheme from one branch to another branch. However, transferring your deposits from one bank to another is not permitted.
It is a unique type of fixed deposit scheme offered by Federal Bank which lets you invest in environment-friendly projects. The funds deposited in this scheme go towards financing eligible businesses or projects that promote a sustainable economy.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
