Federal Recurring Deposit Interest Rates
Federal Bank Recurring Deposit
A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.
The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.
Advantages to opening an RD account:
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment
- Secure from fluctuations and volatility
- Ideal for starters
- Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
- Can be opened with small minimum amount.
- Lump sum received at maturity, including the interest
- The rate of interest is higher as compared to an ordinary saving bank account
- Flexible tenures to suit the budget of the individual
- Recurring Deposit Interest rate is fixed so you are assured of a fixed return
- Loan / overdraft facility available with some banks.
Federal Recurring Deposit
An RD in Federal Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a Federal Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of Federal Bank RD Account
Federal Bank RD scheme is a simple, yet brilliant scheme to save small amounts of money each month to save towards a goal and plan for your future needs. Following is an overview of its features:
- Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
- Choose any amount and tenure as per your convenience.
- Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
- Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
- Attractive interest rates: Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
- Is a safe, low-risk form of investment.
- Quick liquidity options and access to your funds when you need it; nominal penal charges apply.
- Avail of Standing instructions facility if you feel it is tedious to make a monthly payment.
- Avail a loan against the recurring deposit.
- Keep track of your deposit through Internet Banking facility
Types of Recurring Deposits Offered by Federal Bank:
Federal Savings Fund - Regular Recurring Deposit:
- Minimum Opening Balance for Federal Bank RD account: Rs. 50 and in multiples of Rs. 10 thereof
- No maximum amount for this recurring deposit scheme
- Period of RD: 6 months to 10 years
- Preferential interest rate for senior citizens
- Interest is paid on maturity on quarterly compounding basis
- TDS on Interest is applicable
- Nomination facility available
- Premature Closure of RD Allowed
RD Xtra Gain Recurring Deposit
- A twin product having all the benefits of a normal Recurring Deposit scheme and am attractive loan offer.
- Any time Loan after 12 months
- Quantum of loan fixed based on 5 years' future RD installments
- Relaxations in income proof documents
- Option to discontinue RD on availing the loan facility
- Only 6 prompt installments in RD is required for existing Retail customers with good repayment history and Average Monthly Balance.
- Age of the borrower shall not exceed 60 years or retirement age whichever is lower at the end of the loan tenor
- Maximum Loan amount: Rs. 5 Lakhs
- Maximum Loan period: 60 months
- Co-obligancy of spouse is required.
- There is no prepayment penalty
Federal Recurring Deposit Interest Rates
Federal Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Federal Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Federal Bank RD interest rates including Federal Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Federal bank, it is advisable to check with the bank directly.
Federal Bank recurring deposit interest rates 2015 – 2016
The current RD Interest rate ranges from 4% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis.
Federal Bank Senior Citizen RD Interest Rates
Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.
Federal Bank RD FAQs
Who is eligible to open an RD account with Federal Bank?
Following are eligible to open an RD with Federal bank:
- Individual (singly or jointly) with others.
- Minor who have attained the age of 10 years and above in his/her own name (proof of age required)
- Minors below the age of 10 years under guardianship of Natural/legal guardian.
- Proprietorship/Partnership Firm, Commercial Organization, Company / Corporate Body
- Hindu Undivided Family
- Association, Club, Society, Trust or Religious/Charitable Educational Institutions,
- Municipality or Panchayat, Government or Quasi-Government body.
- Illiterate and blind persons can also open accounts.
What is the minimum and maximum amount required to open an RD with Federal Bank?
Minimum Opening Balance for Federal Bank RD account: Rs. 50 and in multiples of Rs. 10 thereof. There is no ceiling on the maximum amount.
What is the minimum deposit period?
The minimum deposit tenure is 6 months and the maximum is 10 years.
How do I apply for a regular recurring deposit?
If you are a new customer, you can start with opening a savings account, which can be linked with an RD account.
Alternately, you can visit your nearest branch and submit the Deposit Account form.
What is the documentation required to open an RD account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence, PAN Card, ID Proof
- Any other KYC documents as required by the bank