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Federal Bank FD Interest Rates

Federal Bank FD Rates 2021

Last Updated 16th Jan 2021

Federal Bank is one of most reliable FD providers amongst a number of FD providers in the market. Federal Bank FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on Federal Bank FD is 5.50%. Latest Federal Bank FD interest rate for senior citizens, on the other hand ranges between 3.00% to 6.00%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 29 days 2.50% 3.00%
30 days to 45 days 2.75% 3.25%
46 days to 90 days 3.00% 3.50%
91 days to 180 days 3.75% 4.25%
181 days to 270 days 4.00% 4.50%
Earn upto 6.95% on FD APPLY NOW

Federal Fixed Deposit Features

Federal Bank FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of Federal Bank Fixed Deposit are:

  • Deposit Amount: Federal Bank FD can be opened with an amount as a low to up to .
  • FD Tenure: Ranges between 7 days to 5 years.
  • Interest Rate Range: 2.50% p.a. to 5.50% p.a.
  • Senior Citizens FD Rate: 3.00% to 6.00% p.a.
  • Highest Interest Rate: As per today’s rate, Federal Bank’s highest interest rate on FD is 5.50% offered for a tenure of 5 years.
  • Safety of Federal Bank Deposits: Federal Bank deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: Federal Bank provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes:

Federal Bank Best FD Plan

We need to compare tenure wise latest FD rate of Federal Bank to choose the tenure at which it provides the highest interest rate. Federal Bank FD rates are best for the deposits with a tenure of 5 years to 5 years, wherein the current FD rate of interest is 5.50% p.a

If one is looking to invest in short term deposits with Federal Bank, FD interest rates range from 2.50% p.a. to 4.40% p.a for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Federal Bank FD rates for senior citizens range from 3.00% to 4.90% p.a.

If one is looking to invest in long term deposits, Federal Bank FD interest rates with tenure of 5 years to 4 years 364 days are a good choice with interest rates on deposits with a tenure of 4 years 364 days at 5.35%. Senior citizens are offered special rates from bank with highest deposit rates of 5.85% p.a. on long term FDs.

Fixed Deposits of Federal Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Federal Bank are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

Federal Bank Fixed Deposit Rates – Premature Withdrawal

Premature closure of Term Deposit with Federal Bank is along with the lower interest rate of 1% for deposits above Rs. 15 lakh than the contracted rate. The penal provisions for premature closure on Federal Bank FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Federal Bank

Federal Bank offers loan up to 90% against its own deposit. Note that Federal Bank will not give you loan against FD of any other bank. Federal Bank offers Loan against FD at the rate of 3.5% to 6.5%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 for 2 years in Federal Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws ₹ 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

FD Account Opening Process at Federal Bank

To open a Fixed Deposit account in Federal Bank, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Federal Bank FD after reading the terms and conditions.

Nomination Facility on Federal Bank FD

Federal Bank offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a Federal Bank fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

FAQs

What is the highest FD rate for Federal Bank?

You can earn a maximum interest of 5.50% on Federal Bank fixed deposit.

Are there any special rates for senior citizens FD of Federal Bank?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 2.50% to 5.50%. Compared to this, the rate of senior citizens FD are in the range of 3.00% to 6.00%.

What are the current Federal Bank FD interest rates 2021?

Current interest for FD in Federal Bank ranges between 2.50% - 5.50%.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in Federal Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

Is it possible to change the tenure of my existing fixed deposit account with Federal Bank?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Federal Bank without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

Can a customer open a FD account online in Federal Bank?

Yes, you can submit your application for opening a FD account on the website of Federal Bank. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

In how many years FD will double in Federal Bank?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.50%. For Federal Bank FD the number of years in which your FD will get doubled is; 72/5.50 = 13


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Federal News - Jan 2021
  • 2021-01-06 : Federal Bank’s gross advances rise 6% YoY in Q3
    Federal Bank reported a 12% increase in total deposits which includes fixed and recurring deposits for the third quarter of the fiscal. Further the bank reported an increase of 6% rise in gross advances which includes home, personal, gold, car, two-wheeler and education loans along with business and mudra loans. CASA ratio stood at 34.48% at the end of December 31, 2020, from 33.38% as on September 30, 2020.
  • 2020-12-29 : Federal Bank revised its FD rates
    With effect from 29 December 2020, Federal Bank revised its FD rates. The revised rates for 7 to 29 days is 2.50%, the rates for 30 to 45 days is 2.75% and it stands at 3% for 46 to 90 days. The rate for 90 to 180 days is 3.75%, it is 4% for 180 to 270 days and stands at 4.40% for 271 to 364 days. In addition to this, the rate for long tenors of 16 months is 5.30%, it is 5.10% for 16 months 1 day to 1 year 11 months 29 days to 2 years to 4 years 364 days. The fixed deposits rate for 5 years is 5.50%.
  • 2020-07-16 : Federal Bank Q1 net profit up 4.3%
    Federal Bank net profit backed by retail loans like home, personal, gold, car and two-wheeler along with business and mudra loans rose by 4.3% to Rs 400.77 crore in Q1 June 2020 over Q1 June 2019. Further, The Bank total deposits which include fixed and recurring deposits reached Rs 1,54,937.74 crore in Q1 June 2020, registering a 16.9% growth from Q1 June 2019.
  • 2019-05-07 : Federal Bank Q4 net jumps 163% at Rs. 382 crores
    Private sector lender, Federal Bank has reported a 163% growth in net profit for the quarter ended March 31, boosted by strong growth across its retail loans segment including home loans and SME loans and fixed deposits. In addition, the lender’s Net interest income (NII) for the quarter increased by 16.57% to Rs. 4,176 crore. The housing loans registered a growth of 32.16%. While the SME loans grew by 12%.
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