Federal Bank RD Interest Rates

Federal Bank Limited, headquartered in Aluva - Kerala, it is one of the biggest Indian commercial banks in the private sector of the country. The bank's operations are divided into four categories: treasury operations, wholesale banking, retail banking, and other banking operations.

Treasury operations include the purchase and sale of securities, shares, and debentures. Working capital, term finance, trade finance, specialist corporate finance products, structured finance, foreign exchange syndicate services, and electronic banking requirements are among the goods and services offered by the bank. The bank also offers its customers RD accounts.

Federal Bank RD

Federal Bank offers the option of opening a recurring deposit account. With a minimum deposit of Rs.50, a recurring deposit account can be started. When it comes to putting funds in the bank's RD accounts, there is no maximum limit. Federal Bank additionally provides customers with a loan facility based on the balance in their recurring deposits. The duration of an RD account with the bank might range from 6 months to 10 years. The following are the tenures and interest rates offered by Federal Bank RD for recurring deposits.

Federal Bank RD interest rates 2024

This is the table to show Federal Bank RD interest rates:

Tenure

RD interest rates in Federal Bank

7 days - 14 days

3.50%

15 days - 29 days

4.50%

30 days - 60 days

5.00%

61 days - 90 days

5.70%

91 days - 119 days

6.00%

120 days - less than 1 year

6.50%

1 year - 549 days

7.30%

550 days

7.50%

551 Days - 2 years

7.30%

Above 2 years

7.40%

Recurring Deposit Federal Bank Interest Rates for NRE Accounts

This feature is also provided to NREs, and this is the table to show the interest rates charged for them:

Tenure

Rate of Interest

1 year

7.30%

2 years

7.30%

3 years

7.40%

4 years

7.40%

5 years

7.40%

6 years

7.40%

7 years

7.40%

8 years

7.40%

9 years

7.40%

10 years

7.40%

Benefits of the RD Account from Federal Bank

  • Most banks offer a straightforward documentation process for opening a recurring deposit account.
  • At the end of the term, one can earn a lump sum of money.
  • Recurring deposits typically provide higher interest rates than fixed-term deposits.
  • The duration of the deposit can be changed to suit your needs.
  • Because the interest rate is fixed, the returns are guaranteed.
  • With this account, some banks provide a loan/overdraft service.
  • A recurring deposit account is an excellent choice for people who do not want to invest a large sum all at once but prefer to invest in smaller amounts regularly. This aids in the preservation of liquidity in your financial portfolio.
  • It is not vulnerable to market swings.
  • Most banks demand only a small payment to open a recurring deposit account.

Types of RD Accounts from Federal Bank

There are mainly three types of RD accounts from Federal Bank, and they are:

1) Short-Term Recurring Deposits: Short-term recurring deposits have a tenure of 181 days to less than one year. The bank offers interest rates on such RDs ranging from 4.00% p.a. to 4.40% p.a. to regular residents. Senior folks receive between 4.50% and 4.90% p.a.

2) Medium Term Recurring Deposits: General residents are provided interest rates ranging from 5.10% p.a. to 5.35% p.a. on medium-term recurring deposits. Citizens over the age of 60 are offered between 5.60% and 5.85% per annum. Medium-term RDs are those with deposit terms ranging from 12 to 36 months.

3) Long-Term Recurring Deposits: Long-term recurring deposits have a deposit tenor of more than 24 months. Federal Bank pays 5.35% p.a. interest on such deposits to regular residents. to 5.50% p.a. Senior citizens are offered the same rate of 5.85% p.a. to 6.00% p.a.

FAQ

Q1. Can I borrow money from my RD account?

Yes, loans can be obtained against the available funds in the account.

Q2. Is it possible to withdraw the interest before the account matures?

No, the interest earned cannot be withdrawn until the RD account matures.

Q3. Is it feasible to modify the Recurring Deposit account's tenure?

No, you cannot change the duration of the Recurring Deposit account.

Q4. What is the smallest amount that can be deposited into a recurring deposit account?

The recurring deposit account can easily be opened with a minimum deposit of Rs. 50/-.

Q5. Can I contribute more money to the Recurring Deposit account?

No, you cannot pay more money into the Recurring Deposit account.

Q6. How does one go about opening a recurring deposit account?

If you are a current Federal Bank customer, you can start a recurring deposit account using Net Banking. If you are not yet a Federal Bank customer, you must first open a savings bank account and then open a recurring deposit account linked to this savings account.

Q7. What documents are needed to start a recurring deposit account?

To start a recurring deposit account, the following documents must be submitted:

Proof of residency, application form, and Photocopies of PAN card ID Proof.

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