4.75% - 6.60%
Interest rates
3 months - 10 years
Time Period
1000 - no limit
Min. - Max amount
QUARTERLY
Compounding
About Federal Bank FD
Federal Bank Limited is a prominent Indian commercial bank in the private sector, with about 1200 branches and 1900 ATMs/Recyclers distributed over India. The Travancore Federal Bank Limited, Nedumpuram was established on April 23, 1931, under the Travancore Companies Regulation, 1916.
Federal Bank provides a variety of fixed deposit programs to both ordinary and senior citizens. These programs help investors achieve both their short and long-term objectives. Federal bank FD rates are competitive, resulting in high returns.
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| Started On | 1949 |
| Head Quarters | Kerala |
| CRISIL Rating | NA |
| CEO | Shyam Srinivasan |
| Listed on exchange as | Federal Bank Ltd. |
| ICRA Rating | NA |
Federal Bank FD Rates 2024
| Tenure | Regular customers | Senior citizens |
|---|
Features and Benefits of Federal Bank FD
The following are the major benefits and characteristics of Federal Bank's FD scheme
- The scheme's duration spans from 7 days to 10 years.
- A loan of up to 90% of the amount available in the FD account is possible.
- Nominations can be made at any time.
- There is an option for auto-renewal.
- The maximum amount that may be placed is unlimited.
- The required minimum deposit is Rs.1,000.
Types of Federal Bank FD Schemes
Regular and FD Interest Rates in Federal Bank
Federal Bank offers its customers a regular fixed deposit program through which they may invest a lump sum amount of their choice for a defined period of time and receive interest. The following are some of the scheme's major features:
Details of the scheme
- Minimum tenure: 7 days – 10 years.
- The amount of the deposit is Rs. 1000.
- Interest is compounded quarterly and paid monthly, quarterly, or yearly.
- Senior Citizen Rates: 0.50% additional interest.
- Withdrawal Too Soon: Available.
- Loan against FD: Up to 90% of the deposit amount is available.
- There is a nomination facility provided.
- There is an option for automatic renewal.
- Individuals have the ability to open (singly or jointly, HUFs, firms, clubs, etc.)
Tax Saving Scheme
The Tax Saving Deposit plan by Federal Bank is an excellent choice for individuals wanting to save tax since it allows investors to claim a deduction under Section 80C of the Income Tax Act of 1961. There is a 5-year lock-in term during which the money cannot be withdrawn.
Details of the scheme
- 5 years tenure (Lock-in period).
- Amount of Deposit: Rs. 100 – Rs. 1.5 lakh.
- Interest is compounded quarterly and paid at maturity.
- Senior Citizen Rates: 0.50% additional interest
- Premature Withdrawal: This option is not available.
- Loan against FD: This option is not available.
- The Branch-to-Branch fund transfer option is available.
- PAN must be quoted.
- Investors can seek tax deductions that can be subtracted from their gross total income, lowering their taxable income.
Cash Certificate
Federal Bank's Cash Certificate scheme is a goal-oriented deposit strategy that focuses on giving high interest to their clients. It is an excellent investment choice for individuals who want to double their deposit amount in a short period of time while avoiding substantial dangers. The following are the scheme's features and benefits:
Details of the scheme
- Tenure: 6 months – 10 years.
- The Min. Deposit Amount is Rs. 1000.
- The federal bank fixed deposit interest rate is compounded quarterly; paid at maturity.
- The rate for Senior Citizens is an additional 0.50% rate of interest.
- A Loan is available for up to 90% of the deposit amount.
- There is a nomination facility provided.
- There is an option for auto-renewal.
- When the deposit matures, the full sum (principal + interest earned) is immediately moved to a Federal Bank savings account.
Term wise Federal Bank FD Rates
Short-Term Deposits
The Period that begins from 7 days to 1 year or less than a year are known as short term fixed deposits, and their interest rates start from 2.5% to 4.4% depending on the number of days of the deposit for general customers, and from 3% to 4.9% for senior citizens.
Medium-Term Deposits
A Medium-term fixed deposit, that is, from 1 year to 5 years, withhold interest rates are 5.1% to 5.35% for general customers and is 5.6% to 5.85% for senior citizens according to the period of lock-in.
Long-Term Deposits
A Long-term FD goes from 5 years and more, and the interest rate is 5.6% for general customers and 6.25% for senior citizens.
Federal Bank vs Other Banks' FD Rates
| Name | Tenure | Interest rate |
|---|
How to invest in Federal Bank FD?
A Federal Bank FD account can be opened through different modes like Mobile App, Internet Banking, and offline.
1) Internet Banking
Follow the below-mentioned steps for opening a Federal Bank FD account via internet banking-
- Sign in to the Federal Bank NetBanking account.
- Open the Home page and select the ‘Fixed Deposit’.
- Select the type of fixed deposit scheme.
- Fill in all the required details, nominee information, interest payout frequency, deposit duration, payment and maturity instructions.
- After verifying the details and completing the account opening process, click on ‘Submit’.
2) Through Mobile App - Federal Bank App
Follow the steps mentioned ahead to open an FD account via Federal Bank App-
- Under the home menu, choose ‘Fixed Deposit’.
- Select the type of fixed deposit scheme.
- Fill in all the required details, nominee information, interest payout frequency, deposit duration, payment and maturity instructions.
- After verifying the details, click on ‘Submit’ for completing the account opening process.
3) Opening Federal Bank FD Offline
For opening a Federal Bank FD account via offline mode, one has to visit the nearest Federal Bank branch. Fill out the Federal Bank FD application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the Federal bank.
Eligibility to Open an Federal Bank FD Account
Individuals or entities satisfying the following criteria can opt for a fixed deposit in the Federal Bank –
- Individuals, including minors
- Partnership firms
- Hindu undivided families (HUF)
- Sole proprietors
- Clubs, associations, and trusts
- Joint-stock companies
Documents Required to Open Federal Bank FD
The following documents have to be furnished for opening the Federal Bank FD –
- PAN Card
- FD application form
- Address proof (Aadhar Card, Telephone bill, Electricity Bill)
- Photographs of the depositor
- Age proof (PAN Card, Birth certificate, Discharge certificate, matriculation certificate).
- ID proof (PAN Card, Aadhar Card, Driving License, and Passport)
Tax on Federal Bank Fixed Deposit
An investment in Federal Bank Tax Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Federal Bank FD entitle to tax saving under Section 80C of the Income Tax Act.
Also, note that the interest income from the Federal Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Federal Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Loan Against Federal Bank FD
Federal Bank provides loans against their Fixed Deposits. Investors can receive up to 90% of the deposit as a loan. The rate of interest for the loan will be according to the terms and conditions of the Federal Bank.
Premature Closure of Federal Bank FD
Federal Bank Fixed Deposits can be withdrawn prematurely, excluding the tax-saving Fixed Deposits. Federal Bank levies a 1% penalty on the interest for all premature withdrawals irrespective of investment tenure.
FAQs
What is the maximum interest rate offered by Federal Bank for senior citizens?
The maximum interest rate offered by Federal Bank for senior citizens is 8.00% for a tenure of 500 days.
Is it possible to add candidates to the FD scheme through Federal Bank?
Yes, Federal Bank allows you to add candidates to the FD scheme.
What is the minimum deposit required to start an FD account?
The minimum deposit required to start a Federal Bank FD account is Rs.1,000.
Is it possible to obtain a loan against the Federal Bank's FD scheme?
Yes, you can take out a loan for up to 90% of the amount available in your FD account.
Who is eligible for the scheme?
Individuals and businesses listed below are eligible to create a Federal Bank FD account:
- Hindu Undivided Family
- Joint accounts
- Individuals
- Associations/ Clubs
- Proprietorships
- Joint-stock companies
- Any entity that has not been prohibited by the RBI
- Firms
What are the documents required?
The following are the papers that must be provided in order to create an FD account:
- Address Proof
- Identity Proof
- Application
- PAN
- Form 60 or 61
- Passport Sized Photos
Calculate
Federal Bank
FD Interest
Investment Amount
₹25,000.00
Time Period
9 Months
1 Year
2 Years
3 Years
Maturity Amount
Federal Bank
₹
@5.1% p.a
