Federal Bank Fixed Deposit Rate

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Federal Bank Fixed Deposit Rate

Federal Bank Fixed Deposit Rate - FD Rate in India

A fixed deposit (FD) account is a conventional form of savings which has a higher rate of interest than a regular savings account. It is considered an ideal form of investment options to earn interest if one has idle money on the side.

FD is a popular mode for investment with the general population in India, as it has an assured return on Investment. It is also safe from the volatility of the market, unlike other forms of investments that are risker, say for instance, the stock market.

You can choose how much you want to deposit and for what time period you want to deposit the amount. Fixed deposits are opened for a time period that usually ranges from seven days to a maximum period of ten years. The interest rates are decided by the issuing bank and they are free to set their own rate. Generally, the interest rate is influenced by the repo rate of the RBI. It also depends on the deposit amount, and the tenure. In India, the interest rate generally ranges from 4% to 8% per annum.

Once you deposit the amount, you cannot withdraw from it, like in a savings account. You can prematurely withdraw from the FD only upon the payment of a penalty. Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened.

If you wish to invest some money, opening an FD account is a simple and hassle-free way to earn interest. The good news is, opening an FD is simple and can even be done online. The documentation process itself is hassle-free and simple.

Apart from banks, NBFCs and corporates too offer fixed deposits.

Federal Bank Deposit Rates

As mentioned before, the rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest. But a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future. Federal Bank Interest Rates typically range from 3% - 8% per annum.

Federal Bank FD rates

Following is an overview of Federal Bank Term Deposit Rates and Federal Bank Short-Term Fixed Deposit Interest Rates.

Federal Bank Interest Rates on Fixed Deposits 2015 – 2016:

(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Federal Bank directly.)

Domestic Deposit Interest Rates for less than Rs. 100 lakhs:

Tenure Rates of Interest (% p.a)
7 days to 14 days 3.00
15 days to 29 days 4.00
30 days to 45 days 5.00
46 days to 60 days 6.00
61 days to 119 days 6.50
120 days to less than 1 year 7.00
1 year 7.35
Above 1 year up to less than 3 years 7.45
3 years 7.60
Above 3 years 7.25

Interest rates for Resident Term Deposits of Rs.1 crore and above

Period Rs.1 crore to Rs.5 crores > Rs.5 crores to Rs.25 crores > Rs.25 crores to Rs.50 crores > Rs.50 crores
7 days to 14 days 4.00% 4.00% 4.00% 4.00%
15 days to 29 days 4.50% 4.50% 4.50% 4.50%
30 days to 45 days 5.00% 5.00% 5.00% 5.00%
46 days to 60 days 5.50% 5.50% 5.50% 5.50%
61 days to 90 days 6.00% 6.00% 6.00% 6.00%
91 days to 180days 6.50% 6.50% 6.50% 6.50%
181 days to 200 days 7.00% 6.75% 6.75% 6.75%
201 days to less than 1 year 7.00% 7.00% 7.00% 7.00%
1 year 7.35% 7.35% 7.25% 7.25%
1 year 1 day to 370 days 7.35% 7.35% 7.25% 7.25%
371 days to 2 years 7.35% 7.35% 7.25% 7.25%
Above 2 years to 5 years 7.25% 7.25% 7.25% 7.25%
Above 5 years 7.25% 7.25% 7.25% 7.25%

NRE Term Deposit Rates:

Period Less than Rs.100 Lakhs
1 year 7.35%
Above 1 year to less than 3 years 7.45%
3 years 7.60%
Above 3 years 7.25%
Period Rs. 1 crore to Rs.5 crores > Rs.5 crores to Rs.25 crores > Rs.25 crores to Rs.50 crores > Rs.50 crores
1 year 7.35% 7.35% 7.25% 7.25%
1 year 1 day to 370 days 7.35% 7.35% 7.25% 7.25%
371 days to 2 years 7.35% 7.35% 7.25% 7.25%
Above 2 years to 5 years 7.25% 7.25% 7.25% 7.25%
Above 5 years 7.25% 7.25% 7.25% 7.25%

Federal Bank FD Interest Rates for Senior Citizens

Federal Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates as applicable on a regular FD and provide seniors with that extra buffer for their retirement years. As of now, the Federal Bank Senior Citizen FD rate of interest is 0.50% higher for all domestic term deposits of all tenors. Note that NRO accounts are not eligible for additional interest offered to senior citizens.

How to Calculate Federal Bank Fixed Deposit Interest

You can use Federal Bank FD calculator to help compute the amount of interest you will earn on a certain principal amount. Using the calculator is easy and hassle-free. You just need to enter the deposit amount, the rate of Interest, and the tenure; the calculator will do the rest and present you with a breakup of the maturity amount and the interest earned.

You can also take aid from online resources to help determine your FD deposit maturity amount and to identify how much interest you will earn on your principal. There are many online websites that have easy-to-use FD calculators that allow you to instantly calculate the interest earned.

Using an online resource helps in determining how much you want to save and invest and calculates the final maturity amount.

You can also calculate the interest earned and the maturity value on the principal amount using the following formula.

Calculate Federal Bank FD Rate

A = P x (1 + r/n)nt

I = A - P

Where

A = Maturity Value

P = Principal Amount

r = Rate of Interest

t = Number of Years

n = Compounded Interest Frequency

I = Interest Earned

Federal Bank FD Premature Withdrawal Penalty

If you face an emergency, say for instance, a medical crisis or other personal emergency, the bank will allow you to withdraw the money from the deposit prematurely. The bank typically charges a nominal penalty which is communicated to you at the time of application of FD Deposit. Presently, the bank charges a premature closure penalty of 1% which is applicable for term deposits above Rs. 15 Lakhs.

In such cases of emergency, you can opt for loan against you fixed deposit. Federal bank offers loans up to 90% of the deposit.

Federal Bank FD – FAQS

Are there tax exemptions to opening an FD?

Regular FD accounts don’t have the benefit of tax exemption and the interest amount earned through it is taxable in line with your tax slab (if it exceeds Rs. 10,000 in a financial year). If you opt for the Federal Tax Savings Deposit, you can save on income tax.

What is the minimum and maximum amount for a tax saving deposit?

The minimum deposit amount for Federal Tax Savings Deposit is Rs. 100 and additional amount in multiples of Rs.100 thereafter. The maximum amount Rs. 150000.

Is premature withdrawal allowed in a Tax Savings Deposit?

Premature withdrawal of Tax Savings Deposit is not permitted. Such deposits have a lock in period of a minimum of 5 years and you can withdraw the amount only after that period is up.

What is the minimum amount required to book a normal fixed deposit?

Minimum deposit amount to book a Fixed deposit with Federal Bank is Rs. 1000. There is no maximum limit.

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