Overview of Federal Bank
Federal bank is a leading commercial bank in India which offers personal, business, online banking services, NRI, and SME banking to its customers. It is a major Indian private sector bank that has its headquarters at Kochi, Kerala. Due to its capital base, it is the fourth largest bank in India. The bank was initially known as Travancore Federal Bank and began operations at Thiruvalla, Kerala in 1931. Federal Bank eventually took over Chalakudy Public Bank, Cochin Union Bank, Alleppey Bank, St. George Union Bank, and Marthandam Commercial Bank. Federal Bank became a scheduled commercial bank in 1970 and in 1994 came out with its initial public offering.
Recurring Deposits from Federal Bank
Recurring Deposits from Federal Bank stipulates the remittance of regular installments for a pre-fixed period at pre-fixed intervals by the customer. It forms part of term deposits offered by Federal Bank. The bank offers flexible and customized RD options to its customers at attractive interest rates. Customers can avail interest rates of a regular fixed deposit without any time constraints or need for high fund remittance. Depositors just need to invest a much smaller amount in RD every month. A Recurring Deposit account with Federal Bank lets you enjoy additional benefits like no Tax Deductible at Source, loan against RD, etc.
Recurring Deposit Schemes Offered by Federal Bank
FEDERAL SAVINGS FUND
Federal Savings Fund is a recurring deposit scheme that helps the account holder to save small amounts of money each month to meet future needs or to save towards a particular goal. The account holder can choose any amount and term according to his/her convenience and affordability. For the sake of enhanced customer-friendly service, Federal bank offers standing instructions facility for auto debit of payments. One can even avail a loan against the recurring deposit. Customers can also keep track of their deposit through Internet Banking.
Features of Federal Savings Fund:
- Minimum deposit required is Rs. 50/- and additional installments can be made in multiples of Rs.10/-
- There is no restriction on maximum amount for this scheme.
- Standing instruction facility provided for automatic transfer of installment amount from savings account.
- Interest cannot be withdrawn before maturity period and interest is paid on quarterly compounding basis.
- Federal Savings Deposit offers loan against the amount in the deposit account, subject to conditions set by the bank.
- Savings funds have a minimum deposit period of 6 months and maximum deposit period of 10 years.
Who can open Federal Savings Fund Deposit in the Bank?
- Individuals jointly with other Individuals.
- Minor Individuals can open a Federal Savings account if it is supervised by a Guardian.
- HUF (Hindu Undivided Family)
- Sole proprietary organizations.
- Clubs or Associations.
- Joint stock companies.
- Entities that are not prohibited by RBI.
FED FLEXI SMART SAVER RD
Fed Flexi Smart SaverRD is a variable recurring deposit scheme with a lot of flexible features offered only to NRI customers. It provides assured returns on investments made to meet future requirements and is ideal for all NRI customers.
In order to open a Fed Flexi Smart SaverRD deposit, the account holder has to choose a core amount and open the deposit account. Monthly installments can be made in multiples of Rs.1 and can be up to 10 times the core amount deposited.
Features of Fed Flexi Smart SaverRD
- There is no due date for monthly installments. Installments can be paid on any date as per the convenience of the customer.
- This scheme is for NRI customers only.
- No pre-closure penalty.
- Minimum tenure of deposit is 12 months.
- Interest will not be earned if the account is closed within a period of 12 months from opening the account.
- Maximum tenure of deposit is 60 months.
- Up to 90% of the deposit amount can be availed as loan.
- This scheme is completely tax free and repatriable.
- Account holders can use FedNet Internet Banking to view their account.
- Fed Net offers the facility for fund transfer to Flexi Smart Saver RD.
- If there is no remittance in the account for 3 continuous months, the account will be disabled for further remittances.
RD EXTRA GAIN
RD Extra gain is a unique product from Federal Bank that enables customers to save money for future needs. Through RD Extra Gain, you can plan your financial goals in advance and has all the benefits of a normal Recurring Deposit scheme. It is accompanied by an attractive loan offer as well.
Features of RD Extra Gain
- Any time Loan after holding the account for 12 months.
- Loan availability is fixed based on the coming 5 years' RD installments.
- Flexible documentation process.
- RD can be discontinued on availing the loan facility.
- With 6 prompt installments in RD, existing Retail customers with good repayment history can avail the loan.
- Even after availing the loan, Customers need to remit only the installment amount.
- Existing customers who have already remitted 12 installments promptly are also eligible.
- Supported by over 1,000 branches
RD account holders of the Bank fulfilling the following conditions can apply:
- Minimum monthly installment required is Rs.1000.
- Minimum tenure for RD is 24 months.
- In order to avail loan, customers are eligible if they have promptly remitted the latest 12 installments in RD.
- Age of the borrower shall not exceed 60 years or retirement age whichever is lower at the end of the loan tenor
- The maximum loan amount a customer can avail is Rs. 5 Lakhs.
- The maximum loan period is 60 months.
- Borrower should not exceed 60 years or retirement age, whichever is lower, at loan maturity.
- If married, co-obligation of spouse is required.
- There is no prepayment penalty.
If you are a new customer, following documents are required:
- Copy of Passport as proof of identity.
- Passport size photograph
- Proof of Residence.
Interest rates offered on Federal Bank’s recurring deposit
Federal bank offers incomparable and competitive interest rates for its RD schemes. The rate of interest depends on various detrimental factors such as the tenure, the amount accumulated, installments made to the account, etc., at the time of determining the interest rates applicable. The Bank will be able to shed light on the latest rates on term deposits via their branches or web portal. Additional interest rate of 0.50% is available for deposits by senior citizens for all tenures.
RD For NRIs/NREs
Fed Flexi Smart SaverRD is a variable recurring deposit scheme with a lot of flexible features offered only to NRI customers. It provides assured returns on investments made to meet future requirements and is ideal for all NRI customers. In order to open a Fed Flexi Smart SaverRD deposit, the account holder has to choose a core amount and open the deposit account. Monthly installments can be made in multiples of Rs.1 and can be up to 10 times the core amount deposited.
Nomination for RD
Nomination facility is available on all deposit accounts opened by the individuals and sole proprietary concern accounts.
Nomination can be made only in favor of one individual. It can be cancelled or changed by the account holder whenever he/she wishes to do so.
While making nomination or during cancellation or change, a third party is required as witness.
Nomination can be modified by the consent of account holder/s.
A minor can be a nominee, and a guardian shall also be stated to supervise.
- How to open a recurring deposit account in Federal Bank? You can open the deposit either as online or offline. If you are having FedNet - Internet Banking account, please visit FedNet to open the deposit online. If you do not have Internet banking facility activated, please visit your branch. In the case of Fed Flexi Smart SaverRD deposit wherein only NRI customers are eligible to open deposit, interested customers can contact Federal Bank representatives by leaving your contact details and they will get in touch with you. Another option is to approach an overseas representative office.
- What is the Minimum & Maximum amount to open recurring deposit in Federal Bank? Federal Savings Fund deposit requires a minimum amount of Rs.50 and has no maximum amount. For Flexi Smart RD the minimum amount to be deposited is Rs.100 and maximum amount is Rs. 1,00,000.00. RD Extra Gain minimum monthly RD installment required is Rs.1000. There is no capping on maximum amount.
- What are the Minimum or Maximum period for RD in Federal Bank? Recurring Deposits have a minimum deposit period of 6 months and maximum deposit period is 10 years. The minimum tenure for Flexi Smart RD is 12 months and maximum tenure is 60 months. For RD Extra Gain the minimum tenure is 24 months and maximum tenure is 60 months.
- Is TDS (Tax Deductible at Source) applicable on Recurring Deposits? The biggest advantage of Federal Recurring Deposits is that no TDS (Tax Deducted on Source) will be applicable for the interest received for the deposit.
- Does the RD account of Federal Bank provide loan against the deposit? Yes. Federal Bank offers loan against RD. The Flexi Smart RD scheme offers loan up to 90% of the deposit amount and the RD Extra Gain scheme offers a maximum loan amount up to Rs.5 lakhs.
- Do Senior citizens get any extra benefit on Recurring Deposits? With the RD scheme offered by Federal bank, Senior Citizens can avail additional benefits in the form of higher returns on investment. Additional interest rate of 0.50% over normal interest rate is available for deposits of senior citizens for all tenors.
- Can I make premature withdrawal of RD? Yes. While prematurely closing a deposit, interest on the deposit for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit remained with the bank and not at the contracted rate.
Know the Current Recurring Deposit Rates
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- Federal Bank Recurring Deposit Interest Rates
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