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Federal Bank Fixed Deposit

Updated 06 Dec 2023

A fixed deposit (FD) is a financial deposit product offering an interest rate higher than a regular savings account. It is a type of investment in which an account holder deposits a certain amount with the bank at a fixed interest for a fixed period. A fixed deposit scheme is a safe investment option because it gives assured returns.


The Federal Fixed Deposit scheme is the right option for those who wish to invest their hard-earned money and get periodical income through interest. The returns may vary depending on the principal amount, FD interest rate and the tenure of fixed deposit investment.

Types of Federal Bank Fixed Deposits

  • Regular Fixed Deposits
  • Cash Certificate
  • Green Deposits
  • Tax Saver Fixed Deposit
  • Deposit Plus

Benefits of Investing in Federal Bank Fixed Deposits

  • A customer can book a fixed deposit for a minimum deposit of ₹ 1000.
  • Fixed deposits have a minimum deposit period of 7 days and a maximum of 10 years.
  • You can opt for monthly, half-yearly, quarterly or yearly interest payments, automatic renewals, automatic credit of interest and principal to your account on due dates etc.
  • Interest and principal amount will automatically be credited to your Federal Bank Savings account on the due date.
  • Fixed deposits with Federal Bank are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a maximum of ₹ 5,00,000 for each depositor.

Features of Federal Bank Fixed Deposits

Regular Fixed Deposits

  • The Federal Fixed Deposit scheme is the right option for those who wish to invest their hard-earned money and get periodical income through interest. 
  • There is no maximum amount for a fixed deposit; one can start an FD with ₹ 1,000. Interest can be withdrawn on specific frequencies such as monthly, quarterly, or annually. 
  • Fixed deposits have an automatic renewal facility. 
  • Interest and principal amount will automatically be credited to your Federal Bank Savings account on the due date. 
  • Fixed deposits have a minimum deposit period of 7 days and a maximum deposit period is 10 years, and one can get a loan against Fixed deposits of up to 90% of the deposit.
  • The interest rate ranges from 3.00% to 6.60% for the general public and 3.50% to 7.25% for senior citizens.

Cash Certificate

  • Federal Cash Certificate is a growth-oriented scheme with high returns. 
  • Cash certificates have a minimum deposit period of 6 months and a maximum of 10 years. 
  • Interest will be quarterly compounded and reinvested. 
  • Interest cannot be withdrawn before the maturity of the deposit.
  • Interest and principal amount will automatically be credited to your Federal Bank Savings account on the deposit's due date. 
  • The minimum deposit amount for a Cash certificate is just ₹ 1000.
  • The interest rate ranges from 3.00% to 6.60% for the general public and 3.50% to 7.25% for senior citizens.

Green Deposits

  • The Federal Bank has introduced Green Deposits, a fixed deposit for a specific tenure, where the amount deposited by you will be used for lending to renewable energy projects, green building projects and projects in smart agri, water or waste management projects etc. 
  • Investing in Green Deposits would become part of the ESG (Environment, Social and Governance) framework. These deposit funds will be utilised for lending towards environment-friendly projects.
  • The interest rate ranges from 3.00% to 6.60% for the general public and 3.50% to 7.25% for senior citizens.

Tax Saver Fixed Deposit

  • The minimum deposit amount for Federal Tax Savings Deposit is just ₹ 100/- and the additional amounts in multiples of ₹100 can deposit up to a maximum amount of ₹ 1,50,000. 
  • These tax savers come with a tax benefit under section 80C of the Income Tax Act.  In the case of joint accounts, tax benefits are available to the first account holder. 
  • No premature withdrawal of tax savings deposits is permitted, and these deposits have a lock-in period of 5 years and can be withdrawn only after 5 years. 
  • A loan facility is not available for a Tax savings deposit. 
  • In the case of Federal Tax Saving Deposits, applicable TDS will be deducted from the interest credited to the operative account/ term deposit periodically. 
  • PAN number of customers shall be mandatorily updated in bank accounts.
  • The interest rate lies between 3.00% to 6.60% for the general public and 3.50% to 7.25% for senior citizens. You must match the interest rate with the tenor period of 5 years.

Deposit Plus

  • Federal Bank’s Deposit Plus is an investment option to provide higher interest rates for your idle money than normal deposits. 
  • The minimum deposit amount is ₹ 15,00,001/- and the minimum tenure is 12 months. 
  • Federal banks don't allow pre-closure of the fixed deposit, provide advance against these deposits, and monthly /quarterly interest pay-out options are also available.
  • The interest rate ranges from 3.00% to 6.60% for the general public and 3.50% to 7.25% for senior citizens.

Federal Bank FD Eligibility Criteria

The following individuals and entities are eligible to apply for a regular Fixed Deposit:

  • Individuals
  • Individuals jointly with other Individuals
  • For Minor Individuals by Guardian
  • HUF
  • Sole proprietary concerns
  • Clubs/Associations
  • Firms
  • Joint stock companies
  • Any other entity not prohibited by RBI

Documents Required for Federal Bank FD Account

Identity Proof

  • Aadhaar Id
  • Passport
  • PAN Card
  • Voter ID Card
  • Driving License
  • Government ID Card
  • Photo Ration Card
  • Senior Citizen ID Card

Address Proof

  • Passport
  • Telephone Bill
  • Electricity Bill
  • Bank Statement with the cheque
  • Certificate ID Card issued by Post Office

How to Open an FD with Federal Bank?

A Federal Bank FD account can be opened through different modes like mobile apps, Internet Banking, and offline.

 

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 ‘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 ‘Submit’.

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 Submit to complete the account opening process.

Opening Federal Bank FD Offline

  • To open a Federal Bank FD account offline, 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.

Breaking an FD Account in Federal Bank through different modes

Using Online Banking

  • Access the Federal Bank's online banking platform.
  • Head over to the 'FDs' segment.
  • Click on the 'Premature Withdrawal’ feature.
  • Choose the FD you're thinking of terminating early.
  • Adhere to the instructions displayed to wrap up the action.

Via Mobile App

  • Open Federal Bank's mobile banking application.
  • Find the space dedicated to Fixed Deposits.
  • Choose the option early closure or termination of the FD.
  • Choose the FD you're considering for closure.
  • Complete the procedure as guided by the app.

At the Bank Branch

  • Walk into your nearest Federal Bank branch.
  • Share with the bank representative your intent to terminate the FD early.
  • They'll provide a form concerning the early closure of FDs. Fill up and submit.
  • Show the required ID and, if needed, the original FD documentation.
  • Once they process your request, your funds will be directed to your primary bank account.

Via Phone Service

  • Some banks provide the option of attending to such matters over their customer service line. Consider dialling Federal Bank's helpline to discuss the possibility of terminating your FD via phone.

FAQs

Can you withdraw FD before its maturity?

Yes. If you need funds urgently, you can avail of premature withdrawal of your Fixed Deposit.

Will I be notified that my deposit has matured?

Yes, you will be notified when your deposit is about to mature and again on the date it matures through SMS and E-mail.

Is the ₹ 5 lakh DICGC insurance cover applicable separately for every bank?

The deposit insurance scheme of RBI covers all Federal Bank deposits of up to ₹ 5,00,000 at the customer level.  If an individual's deposit exceeds ₹ 5 lakhs in a single bank, only ₹ 5 lakhs, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.

Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

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