• Federal Bank NRI Fixed Deposits

    Federal Bank offers Fixed Deposits (FDs) to Non-Resident Indians (NRIs) at attractive interest rates. Two different FD schemes are offered by the bank for NRIs.

    Types of NRI Fixed Deposits

    The two different types of FDs that the bank offers for NRIs are mentioned below:

    • NRE Fixed Deposit
    • NRO Fixed Deposit

    Features of Federal Bank NRI Fixed Deposits

    NRE Fixed Deposit

    The main features of the NRE Fixed Deposit scheme are mentioned below:

    • The tenure of the FD ranges between 1 year and 10 years.
    • Premature withdrawal facility is provided. However, no interest will be paid before the completion of the first year.
    • No wealth tax needs to be paid for the amount that is outstanding in the NRE accounts.
    • Any interest that has been earned will not come under the Indian Income Tax Act. However, the NRI must live abroad.
    • Up to 90% of the amount that is available in the account may be provided as a loan.

    NRO Fixed Deposit

    • Under the scheme, recurring deposits, FDs, savings, and current accounts are permitted.
    • Up to 90% of the amount that is available in the account can be availed as a loan. However, the rate of interest will be 2% more than the deposit rate (plus interest tax).
    • Premature withdrawal is allowed.
    • Only non-residents can open the account.
    • Foreign nationals or entities apart from Bangladesh/ Pakistani nationality individuals can open an account.
    • Joint accounts with residents or non-residents can be opened.

    Process to Open an Account

    The different ways by which you can open an NRE Fixed Deposit Account are mentioned below:

    Interest Rates (NRE Fixed Deposit) for Less than Rs.2 crore

    Duration Rate of Interest
    1 year – Less than 16 months 5.10%
    16 months 5.50%
    16 months 1 day – Less than 2 years 5.10%
    2 years 1 day – Less than 5 years 5.10%
    5 years and above 5.50%

    Note: Federal Bank may change the interest rates without prior notice. The interest rates mentioned above are effective from 01 April 2021.

    FAQs on Federal Bank NRI Fixed Deposits

    1. Is premature withdrawal allowed under the Federal Bank NRI Fixed Deposits scheme?

      Premature withdrawal is permitted under the Federal Bank NRI Fixed Deposits scheme, and interest will be paid at the applicable rate from the date of opening till the completed period.

    2. Are interests made under the NRE accounts under the Federal Bank NRI Fixed Deposits scheme exempted from Income tax?

      Yes, interest earned on NRE accounts under the Federal Bank NRI Fixed Deposits scheme is tax-free in India as long as the NRI is not a resident of the country.

    3. Can I open a joint NRO account under the Federal Bank NRI Fixed Deposits scheme?

      Yes, you can open a joint NRO account with other non-residents and residents under the Federal Bank NRI Fixed Deposits scheme.

    4. What is the minimum interest rate offered under the Federal Bank NRI Fixed Deposits scheme?

      The minimum interest rate offered under the Federal Bank NRI Fixed Deposits scheme is 5.10%.

    5. Are there any special benefits offered to senior citizens under the Federal Bank NRI Fixed Deposits scheme?

      No, there are no additional benefits offered to senior citizens under the Federal Bank NRI Fixed Deposits scheme.

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