A fixed deposit (FD) is a financial deposit product that offers an interest rate higher than that of 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 by way of interest. The returns may vary as it depends on the principal amount, FD interest rate and the tenure of fixed deposit investment.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 29 days||3%||3.5%|
|30 days to 45 days||3.25%||3.75%|
|46 days to 60 days||4%||4.5%|
|61 days to 90 days||4.75%||5.25%|
|91 days to 119 days||4.75%||5.25%|
|120 days to 180 days||5%||5.5%|
|181 days to 270 days||5.75%||6.25%|
|271 days to less than 1 year||6%||6.5%|
|1 year to less than 15 months||6.8%||7.3%|
|15 months to 2 years||7.25%||7.75%|
|Note: All interest rates are updated as of 1st Aug 2023|
1. 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 by way of interest. There is no maximum amount for a fixed deposit and one can start an FD with ₹ 1,000. Interest can be withdrawn on specific frequencies as either monthly or quarterly or annually. Fixed deposits have an automatic renewal facility. On the due date, interest and principal amount will be credited to your Federal Bank Savings account automatically. 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.
2. 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 deposit period is 10 years. Interest will be quarterly compounded and reinvested. Interest cannot be withdrawn before the maturity of the deposit. On the due date of the deposit, interest and principal amount will be credited to your Federal Bank Savings account automatically. The minimum deposit amount for a Cash certificate is just ₹ 1000.
3. 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. By investing in Green Deposits, one would become part of the ESG (Environment, Social and Governance) framework. These deposit funds will be utilized for lending towards environment-friendly projects.
4. 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 in the case of 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.
5. 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 following individuals and entities are eligible to apply for a regular Fixed Deposit online:
A Federal Bank FD account can be opened through different modes like Mobileapps, Internet Banking, and offline.
1) Internet Banking
Follow the below-mentioned steps for opening a Federal Bank FD account via internet banking-
2) Through Mobile App - Federal Bank App
Follow the steps mentioned ahead to open an FD account via Federal Bank App-
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.
An investment in Federal Bank Tax Saving FD is entitled to tax saving up to ₹ 1,50,000 p.a. No other Federal Bank FD is entitled to tax saving under Section 80C of the Income-tax Act, 1961. Interest income from the Federal Bank Fixed Deposit is taxable according to the slab rates of Bank FD exceeding ₹ 40,000 p.a.
For senior citizens, the limit is ₹ 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Yes. If you need funds urgently, you can avail of premature withdrawal of your Fixed Deposit.
Yes, you will be notified when your deposit is about to mature, and again on the date it matures through SMS and E-mail.
The deposit insurance scheme of RBI covers all Federal Bank deposits of up to ₹ 5,00,000 at the customer level. In case an individual's deposit exceeds ₹ 5 lakh in a single bank, only ₹ 5 lakh, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.