Federal Bank Savings Account

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Federal Bank Savings Account

A savings account is the most basic kind of bank account and is often the first bank account for many. It is very easy to open and operate a savings account. It offers a low interest rate but it is a safe and convenient way of storing money. There are different kinds of savings accounts for different needs and it is best to check the various account offerings to decide which one suits you the best. Banks also offer zero-balance savings accounts for those who want just basic banking facilities without having to keep a minimum balance.

Benefits of a savings account

There are several advantages to having a savings account:

  • Easy access to your money: You can deposit and withdraw money from a savings account subject to a few minor restrictions, depending on the type of account.
  • Interest income: While you earn less interest in a savings account as compared to an FD or RD account, you also have far greater freedom in operating the account.
  • Bill payment: With the advent of digital banking, it is extremely easy to pay your utility bills etc.
  • Transferring funds with ease: You can transfer funds and conduct various banking transactions with a savings account.
  • Safety: It is definitely better to store your money securely in a bank rather than keeping it in your home.
  • Requires minimal documentation: A savings bank account is easy to open and requires minimal documentation

Disadvantages:

  • There are various fees associated with a savings account.
  • You need to maintain a specific balance each month in order to avoid penalties. The minimum balance required, interest rate and fees and charges vary from bank to bank and the type of account opened.
  • The interest is far lower when compared to that of, say, a Fixed Deposit account and offers low returns in comparison to other forms of savings.

Even with the downsides, a savings account is popular with the old and the young, as it provides easy access to money in times of need and inculcates a habit of saving. With the easy banking modes it has on offer, a savings account is a must to have.

Federal Bank Savings Account

A Federal Bank savings account provides a host of banking benefits like flexible easy accounts management, along with a competitive interest rate. You can make quick utility bill payments via NetBanking, and enjoy various features in convenience banking with a Federal Bank Savings Account.

Features and Benefits of a Federal Bank Savings Account

There are various benefits to having a savings account with Federal Bank:

  • Safety and security when you store your cash in a savings account
  • Different savings account for different needs.
  • Access your account with ease via Internet Banking / SMS Bank / Phone Banking

Types of Federal Bank Savings Accounts

Below are a few of the different savings accounts available. For the full list of savings accounts options, check the bank website or visit the nearest branch.

Basic Savings Bank Deposit (BSBD)

This is a no-frills basic account that does not require any balance in the account and offers basic withdrawal and deposit facilities.

  • No Minimum balance requirements
  • One Free Cheque Book (20 leaves) per financial year
  • Proprietary ATM card
  • Account view facility on Fednet (Internet Banking)
  • Only 4 withdrawals in a month are permitted including branch, ATM, cheque clearing, etc. 
  • Aadhaar based credit of subsidy/government benefits are free of charge.
  • Average Monthly Balance – Nil

Fed Smart

  • 60 Free "Anywhere" Cheque leaves per half year
  • Free monthly Account Statements by post
  • Free daily email statements to your inbox
  • Visa International Gold Debit Card
  • Free daily cash withdrawals, up to Rs. 75,000 through ATMs
  • Free daily POS transactions up to Rs. 75,000
  • Temporary overdraft facility through ATM's up to Rs. 25,000/-
  • Internet Banking, Mobile Banking, Email alerts, unlimited Demand Drafts
  • Free RTGS / NEFT facility
  • 50% concession in Processing Fee / Administration Fee for all Retail Loan Products
  • Average monthly balance Rs. 1, 00,000

Selfie Account

This is a mobile-based SB account opening facility, open to all residents with an Android or Apple smartphone. If you wish to open a Selfie account, you need to download the Fedbook app from Google Play Store / iStore, select the branch as per your choice, scan your Aadhaar card & PAN, take a selfie, and submit to open the account instantly.

Your account number is generated real time. Once the account is opened, the app will turn itself into your digital passbook.

After submitting your application, you will receive a confirmation SMS / call from the bank's call centre on how to activate the account. Or you can request the bank's representative to meet you at your place to complete the account opening formalities or you can visit the nearest branch.

On generation of the account number, you can remit up to Rs.10,000 as a one-time initial remittance by way of fund transfer (NEFT / Cheque) even before the activation of the account.

It is a Zero Balance Account.

Freedom SB

  • 20 Free cheque leaves per half-year
  • Debit cards - Visa International Shop n Save Debit Card / MasterCard Classic
  • Free daily Cash withdrawals up to Rs 20,000/- (using Shop n save) & Rs 30,000/- (using MasterCard Classic)
  • Free daily POS transactions up to Rs 30,000/-
  • Free Internet Banking, Mobile banking, E-mail alerts
  • RTGS / NEFT facility available
  • Minimum Balance – Rs. 1000

Mahilamitra

This is an SB account for women above 18 years. Benefits include:

  • 40 Free Cheque leaves per half-year
  • Visa International Gold Debit Card
  • Free daily cash withdrawals up to Rs. 75,000 /- (through ATM)
  • Free daily POS transactions up to Rs. 75,000/-
  • Temporary overdraft facility through ATM's up to Rs. 25,000/-
  • Free Internet banking, Mobile banking and email and mobile alerts
  • 50% concession on Processing Fee / Administration Fee for all Retail Loan Products
  • Free RTGS / Free NEFT facility available
  • Two Young Champ accounts in the name of minor children
  • Average Monthly Balance of Rs 5000

Federal Bank Savings Account Minimum Balance

The minimum balance required in a Federal Bank savings account differs with each kind of account. It is advisable to contact the bank directly for details. Following is an overview:

Type of Savings Account Average Monthly Balance Required
Basic Savings Bank Deposit Nil
Fed Smart Rs. 1,00,000
Selfie Account Nil
Freedom SB Rs.1000
Mahilamitra Rs. 5000

Federal Bank Savings Account Interest Rate

Federal Bank savings account comes with interest rates of 4%, depending on the daily balance, and the type of account. Do keep in mind that the rates are subject to change at the sole discretion of the bank. It is advisable to check with the Bank for accurate rates.

Federal Bank Savings Account Charges

Different Federal Bank savings accounts have a different schedule of charges. It is best to contact the bank directly for the most up to date charges.

How to open a Federal Bank Savings Account

You can open a Federal Bank savings account in three ways:

You can visit your nearest branch and have a customer care representative help you with the forms. You can talk to the representative about your saving needs and open an account accordingly.

You can open a savings account online. You need to fill the online account opening form and submit it online. You will be contacted once your form is received.

You can open a Selfie savings account on your mobile phone.

Federal Bank Savings Account FAQS

What is the best interest rate on a Federal Bank saving account?

The interest rates are currently at 4 %. For the latest interest rates, it is best to contact the nearest branch.

Who is eligible to open a Basic Savings Account with Federal Bank?

Resident Individuals (sole or joint account), Hindu Undivided Families, Trusts, Associations, Clubs or Societies, Foreign Nationals residing in India (as permitted by Foreign Exchange Management Act), and others specifically permitted by RBI.

Is it possible to open a Federal Bank savings account online?

Yes, you can open a savings account online. You need to fill in and submit the online account opening form on their website. Once your application is received you will be contacted by a bank representative.

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