| Started On | 1949 |
| Head Quarters | Kerala |
| CRISIL Rating | NA |
| CEO | Shyam Srinivasan |
| Listed on exchange as | Federal Bank Ltd. |
| ICRA Rating | NA |
| Tenure | Regular customers | Senior citizens |
|---|
The following are the major benefits and characteristics of Federal Bank's FD scheme
Federal Bank offers its customers a regular fixed deposit program through which they may invest a lump sum amount of their choice for a defined period of time and receive interest. The following are some of the scheme's major features:
Details of the scheme
The Tax Saving Deposit plan by Federal Bank is an excellent choice for individuals wanting to save tax since it allows investors to claim a deduction under Section 80C of the Income Tax Act of 1961. There is a 5-year lock-in term during which the money cannot be withdrawn.
Details of the scheme
Federal Bank's Cash Certificate scheme is a goal-oriented deposit strategy that focuses on giving high interest to their clients. It is an excellent investment choice for individuals who want to double their deposit amount in a short period of time while avoiding substantial dangers. The following are the scheme's features and benefits:
Details of the scheme
The Period that begins from 7 days to 1 year or less than a year are known as short term fixed deposits, and their interest rates start from 2.5% to 4.4% depending on the number of days of the deposit for general customers, and from 3% to 4.9% for senior citizens.
A Medium-term fixed deposit, that is, from 1 year to 5 years, withhold interest rates are 5.1% to 5.35% for general customers and is 5.6% to 5.85% for senior citizens according to the period of lock-in.
A Long-term FD goes from 5 years and more, and the interest rate is 5.6% for general customers and 6.25% for senior citizens.
| Name | Tenure | Interest rate |
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A Federal Bank FD account can be opened through different modes like Mobile App, 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.
Individuals or entities satisfying the following criteria can opt for a fixed deposit in the Federal Bank –
The following documents have to be furnished for opening the Federal Bank FD –
An investment in Federal Bank Tax Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Federal Bank FD entitle to tax saving under Section 80C of the Income Tax Act.
Also, note that the interest income from the Federal Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Federal Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Federal Bank provides loans against their Fixed Deposits. Investors can receive up to 90% of the deposit as a loan. The rate of interest for the loan will be according to the terms and conditions of the Federal Bank.
Federal Bank Fixed Deposits can be withdrawn prematurely, excluding the tax-saving Fixed Deposits. Federal Bank levies a 1% penalty on the interest for all premature withdrawals irrespective of investment tenure.
What is the maximum interest rate offered by Federal Bank for senior citizens?
The maximum interest rate offered by Federal Bank for senior citizens is 8.00% for a tenure of 500 days.
Is it possible to add candidates to the FD scheme through Federal Bank?
Yes, Federal Bank allows you to add candidates to the FD scheme.
What is the minimum deposit required to start an FD account?
The minimum deposit required to start a Federal Bank FD account is Rs.1,000.
Is it possible to obtain a loan against the Federal Bank's FD scheme?
Yes, you can take out a loan for up to 90% of the amount available in your FD account.
Who is eligible for the scheme?
Individuals and businesses listed below are eligible to create a Federal Bank FD account:
What are the documents required?
The following are the papers that must be provided in order to create an FD account: