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Federal Bank FD Interest Rate

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...Read More

Federal Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 days to 29 days3 %3.5 %
30 days to 45 days3.25 %3.75 %
46 days to 60 days4 %4.5 %
61 days to 90 days4.75 %5.25 %
91 days to 119 days4.75 %5.25 %
120 days to 180 days5 %5.5 %
181 days to 270 days5.75 %6.25 %
271 days to less than 1 year6 %6.5 %
1 year to less than 15 months6.8 %7.3 %
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15 months to 2 years
7.25 %7.75 %
Above 2 years to less than 3 years6.75 %7.25 %
3 years to less than 5 years6.6 %7.1 %
5 years and above6.6 %7.25 %

Features of Federal bank Fixed Deposit

  • You can start with a minimum ₹1000/- fixed deposit
  • There is no maximum amount of fixed deposit
  • Liberty for interest withdrawn either monthly, quarterly or annually
  • Automatic FD renewal
  • On the due date principal and interest amounts are automatically credited to the account
  • Investors can avail of the facility of getting the loan
  • Fixed deposits have a minimum deposit period of 7 days and a maximum deposit period is 10 years.

Types of YES Bank Fixed Deposits

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 Interest can be withdrawn on specific frequencies as either monthly or quarterly or annually.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 Interest cannot be withdrawn before the maturity of the deposit.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.

Pros and Cons of Investing in YES Bank Fixed Deposits

Pros:

  • 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 deposit period is 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
  • On the due date, interest and principal amount will be credited to your Federal Bank Savings account automatically.
  • 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.

Cons:

  • At times fixed deposit interest rates can’t beat the inflation rates.

Federal Bank FD Eligibility Criteria

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

  1. Individuals
  2. Individuals jointly with other Individuals
  3. For Minor Individuals by Guardian
  4. HUF
  5. Sole proprietary concerns
  6. Clubs/Associations
  7. Firms
  8. Joint stock companies
  9. 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 a Federal Bank?

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-

  • 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 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.

Tax Implications on Federal Bank Fixed Deposit

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%.

FAQs

Can 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.  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.

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Calculate Federal Bank FD Returns

₹1,00,000
15 months to 2 years
7 days to 29 days30 days to 45 days46 days to 60 days61 days to 90 days91 days to 119 days120 days to 180 days181 days to 270 days271 days to less than 1 year1 year to less than 15 months15 months to 2 yearsAbove 2 years to less than 3 years3 years to less than 5 years5 years and above
7.25 %
Yes
No
Maturity Amount₹1,09,058

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