4,80,000 people visited this section in last 30 daysApply Online

MyLoanCare - Baat Aapke Interest Ki

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Federal FD - Scheme, Eligibility, Documents

Federal Bank Fixed Deposit Highlights

Last Updated 25th Jun 2021

Federal Bank fixed deposit is a reliable, secure and beneficial investment option that offers various benefits such as guaranteed returns, Government insurance, loan borrowing facility and flexible fixed deposit tenure.

Interest Rate 2.50% to 5.60%
Minimum Tenure 7 days
Maximum Tenure 10 years
Deposit Amount Rs 1000
Maximum Deposit No Limit
    Earn upto 6.95% on FD APPLY NOW

    Federal Bank FD

    Federal Bank is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 7 days to 10 years. Apart from that, Federal Bank FD offers regular returns on fixed deposits ranging between 2.50% to 5.60%. For senior citizens, the interest rates on fixed deposits range between 3.00% to 6.25%. In addition to that, Federal Bank fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

    Types of Federal Bank Fixed Deposit Schemes

    Different type of Federal Bank term deposit products offered to the investors are listed as follows:

    Standard Fixed Deposit

    Description:

    Benefits of Federal Bank FD

    Federal Bank fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

    • Guaranteed returns: The best thing about Federal Bank FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, Federal Bank offers FD rates up to 5.60%. The interest rates offered on Federal Bank FD is not only assured but also way higher than a savings account.
    • Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, Federal Bank term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
    • Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because Federal Bank fixed deposit allows one to borrow a secured loan against Federal Bank FD. Benefits of Loan Against FD of Federal Bank are as follow:
      • Loan against FD of Federal Bank offers the loan amount upto 90%-95% of the FD amount.
      • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
      • Loan against FD of the Federal Banks flexible repayment options.
      • The processing fee of Loan Against FD in the Federal Bank is nil.
      • It is a hassle-free loan and does not require the depositor to break the FD.
    • Flexible tenures: Federal Bank FD offers the investors the flexibility to choose the investment tenure as per their convenience. Federal Bank offers fixed deposit for a minimum tenure of 7 days up to a maximum tenure of 10 years. Federal Bank offers different interest rates across FD tenures.
    • Flexible investment: Apart from the flexibility of tenure, Federal Bank fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs 1000. Apart from that, one can invest in the Federal Bank FD up to a maximum of No Limit.

    Premature Withdrawal Terms and Conditions

    Though a fixed deposit with Federal Bank means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

    Withdrawing funds prematurely from Federal Bank will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of Federal Bank fixed deposits with tenure less than seven days, the bank does not pay any interest.

    Eligibility Criteria for Federal Bank FD

    Federal Bank FD facility can be availed by the following type of investors:

    • Indian Citizens
    • Members of HUFs or the Hindu Undivided Family
    • Business firms
    • Local governing bodies
    • Government departments
    • Employees of private limited companies
    • Trust accounts

    Documents for Federal Bank FD

    Federal Bank fixed deposit requires one to submit the following documents:

    • Passport size photographs
    • Identity proofs such as Aadhar card, passport, PAN card, and driving license.
    • Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
    • Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
    • Bank account details such as passbook and account number.

    Credit Card Against Federal Bank FD

    Credit Cards againstFederal Bank FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against Federal Bank FD:

    • The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
    • Credit Cards against the fixed deposits require minimum documentation.
    • The minimum tenure of the term deposits should be 6 months to avail credit card against it.
    • Secured Credit cards also offer discounts, cashback and rewards.
    • The cardholder continues to earn the same applicable interest rate on FD.

    FAQs

    What is the loan against FD repayment tenure in Federal Bank?

    Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. Federal Bank offers the loan against FD facility to the FD investors with a repayment tenure of up to 10 years.

    What is the minimum investment for FDs under Federal Bank?

    Federal Bank Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs 1000.

    What is the minimum amount for a fixed deposit in Federal Bank?

    The minimum amount required for a fixed deposit investment in Federal Bank fixed deposit is Rs 1000.

    What is the current interest rate on FD in Federal Bank?

    Currently, Federal Bank offers an interest rate ranging between 2.50% to 5.60% on its fixed deposits.

    What is the penalty for early withdrawal in Federal Bank?

    Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

    What is the minimum FD tenure for which a fixed Deposit account can be opened in Federal Bank?

    Federal Bank fixed deposit can be opened with a minimum tenure of 7 days. The tenure of the Federal Bank fixed deposits ranges from 7 days to 10 years.

    Can I deposit additional amount in my Federal Bank 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.

    What documents are required to open an FD account in Federal Bank?

    The documents required to open an FD account in Federal Bank includes KYC documents and Passport size photos.

    In how many years FD doubled in the Federal Bank?

    The time Federal Bank fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the Federal Bank FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

    Can an NRI open a Federal Bank fixed deposit account?

    No, Non-Resident Individuals are not allowed to invest in Federal Bank schemes. It means that they are not eligible to invest in fixed deposits.

    Is the Federal Bank safe for FD?

    Yes, the Federal Bank is one of the safest avenues for any investments. Federal Bank is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

    Is it wise to take a loan against FD from the Federal Bank?

    Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from Federal Bank are:

    • It offers the loan upto 90%-95% of the FD amount.
    • The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
    • Loan against FD offers flexible repayment options.
    • The processing fee of Loan Against FD is Nil.
    • It is a hassle-free loan and requires minimum documentation.
    • Loan against FD helps the depositors to avoid the option of premature withdrawal.

    However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.


    Notification ×
    • Home Loan

      Home Loan at all-time low rates starting at 7.65%. Cashback of up to ₹ 1,000.

      Apply Now
    • Personal Loan

      Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

      Check Offers
    • Gold Loan

      Instant Gold Loan starting at 8.50% with Cashback of up to ₹ 500

      Apply Now
    • Loan Against Property

      Best Loan Against Property Offers starting @ 10.10%. Cashback of up to ₹ 1,000*.

      Apply Now
    • Business Loan

      Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

      Apply Now
    • Fixed Deposit

      AAA rated FDs with returns as high as 6.95%.

      Invest Now
    Federal News - Jul 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%.
    *Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
    Loader
    Please wait while your information is being processed...