Federal Savings Fund 2025

Features of Federal Savings Fund

1. The minimum amount of deposit for Federal Savings Fund is Rs.50. The additional contributions have to be made in multiples of Rs.10.
2. The minimum tenure for which people can deposit money in this account is 6 months and the maximum tenure is 10 years.
3. People can choose to open a joint account.
4. This scheme does not have a limit on the maximum deposit amount.
5. Depositors can choose to activate the Standing Instruction facility for this scheme. It will allow the installment amount to be transferred automatically from your savings account to this account by the due date.
6. The interest that depositors earn will be paid to them on maturity of the account.
7. Depositors can choose to avail a loan against this recurring deposit account.

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Fees and Charges:

Type	Amount
Delay in installments (if it is not paid by the due date and 10 days grace period)	Rs.1 for each Rs.100 per month (subjected to a minimum of Rs.10)
Premature account closure (if you close your RD account within 1 year)	Rs.150

The fees and charges may be changed at any time at the bank's discretion.

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Eligibility Criteria of Federal Savings Fund

1. Individuals are eligible to open this account.
2. In case of minors, the parents/guardians can open the account.
3. HUF, proprietorship, associations, clubs, firms, joint stock companies and any other entity that is not forbidden by the RBI can open this account.

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Application Process for Federal Savings Fund Account

Customers can choose to open a Federal Savings Fund Deposit account online and offline. To apply for this account online, they need to have a FedNet- Internet Banking Account. If they do not have the interest banking service activated for their account, then they have to visit the bank's branch and apply in person.

RD Article pages

1. Recurring Deposit Vs. Chit Fund
2. Miss to Pay the Recurring Deposit Due
3. Difference Between Recurring Deposit and SIP
4. Open RD Account through HDFC NetBanking
5. RD Account in SBI
6. Advantages of Recurring Deposit
7. Flexi RD
8. SBI Flexi RD Schemes
9. Monthly Recurring Deposit
10. City Union Bank Recurring Deposit
11. Indian Bank Recurring Deposit
12. Union Bank Recurring Deposit
13. UCO Bank Recurring Deposit

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FAQs on Federal Savings Fund

• What is the minimum and maximum deposit period for the Federal Savings Funds?

  The Federal Savings Funds have a minimum deposit period of 6 months, and the maximum deposit period is 10 years. 

• What is the minimum deposit amount for the Federal Savings deposit scheme?

  The minimum deposit amount for the Federal Savings deposit is just Rs.50, and additional contributions can be made in multiples of Rs.10. 

• What are the available methods for opening a Federal Savings Fund Deposit?

  You can open a Federal Savings Fund Deposit through online or offline methods. If you have FedNet - Internet Banking or FedMobile, you can open the deposit online. Alternatively, if you do not have Internet banking activated, you can visit your branch to open the Federal Savings Fund deposit. 

• Is there a maximum limit for the Federal Savings recurring deposit scheme?

  No, there is no maximum amount limit for the Federal Savings recurring deposit scheme. 

• Can I claim an exemption from TDS on the interest earned from a Federal Bank Recurring Deposit?

  Yes, the deposit holder can claim exemption from Tax Deducted at Source (TDS) by submitting Form 15G/15H, provided they meet the specified criteria. 

• How does the standing instruction facility work in the Federal Savings scheme?

  The standing instruction facility enables the automatic transfer of the instalment amount from your savings account to your Federal Savings deposit. 

• Can I open a joint account under the Federal Savings Fund scheme?

  Yes, individuals have the option to open a joint account under the Federal Savings Fund scheme. 

• How can I avail a loan against my Federal Savings Fund account?

  Depositors can choose to avail of a loan against their Federal Savings Fund recurring deposit account. The instalment amount can be transferred automatically from their savings account to this account through the Standing Instruction facility.

• When can the interest be withdrawn in the Federal Savings Deposit scheme?

  Interest cannot be withdrawn before the deposit matures, and it is paid on maturity on a quarterly compounding basis. 

• How can individuals with FedNet - Internet Banking account open a Federal Savings Fund Deposit online?

  Individuals with FedNet - Internet Banking accounts can open a Federal Savings Fund Deposit online by visiting FedNet. If you have FedMobile, you can also log in to the app to open a Recurring Deposit online. If Internet banking is not activated, a visit to the branch is required for the opening of a Federal Savings Fund deposit. 

• Who is eligible to open a Federal Savings Fund Deposit?

  Individuals, either singly or jointly with others, as well as Minor Individuals under the guardianship, Hindu Undivided Families (HUFs), sole proprietary concerns, clubs, associations, firms, joint stock companies, and any other entities not prohibited by RBI are eligible to open a Federal Savings Fund Deposit. 

• How can a deposit holder claim exemption from TDS in the Federal Savings Fund?

  The deposit holder may claim exemption from TDS by submitting Form 15G/15H (applicable to individuals other than a company, firm, or co-operative society), an Exemption Certificate under Section197 (for all holders), or any other Tax Exemption Certificate with the Bank. This submission is required every financial year for each recurring deposit held with the Bank, subject to eligibility.