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Fixed Deposit

Federal bank was established in year 1947. Now it is one of the major Commercial banks in India. Having it’s headquarter at Kerala it is operating from all over the country.They are providing different deposits schemes as per the need of the customers. Various deposit schemes provided by them are Fixed Deposit schemes, Cash Certificates, Tax saving deposits, Federal Saving Fund and Millionaire Federal Saving Fund. The deposit schemes fetch the requirement of all type of customers and works towards increasing their capital by providing attractive rate of interest.
 

Federal Bank FD Rates 2018

FD Tenure

Interest Rates (in %)

Regular Citizens Senior Citizens
7 days to 14 days 3.50 4.00
15 days to 29 days 4.50 5.00
30 days to 60 days 5.00 5.50
61 days to 90 days 5.70 6.20
91 days to 119 days 6.00 6.50
120 days to 270 days 6.25 6.75
271 days to less than 1 year 6.50 7.00
1 year 6.70 7.20
Above 1 year to 2 years 6.60 7.10
Above 2 years to 1110 days 6.50 7.00
1111 days 7.00 7.50
1112 days and above 6.50 7.00

Note: Above interest rates are offered on deposits below Rs 1 Crore w.e.f. 17th July, 2017. Rates are subject to change without prior information.

Federal Bank Fixed Deposit

Federal Bank Fixed Deposits:
 

It is the best suitable scheme to fetch who wants to deposit their surplus fund and want to earn regular income over a period at an interest rate.
 

Features
 

  • Direct credit of interest and principal amount on due date
  • Automatic renewals of the scheme
  • Open the Fixed Deposit account with minimum of Rs 1000/-
  • Deposit the amount for minimum period of 7 days
  • Withdraw your interest on either regular interval of yearly or half yearly or quarterly or monthly
  • Auto-credit your principal and interest amount directly to your Federal Bank saving account
  • Nomination is allowed
  • Loan facility available up to 90%

Tax Deduction:
 

  • Under sec 206AA of Finance (No.2) Act, 2009, individuals who earn interest which is eligible for tax deduction has to submit PAN card, else their TDS will be deducted @ 20% for all domestic deposits.
  • If the total income including interest income under the scheme comes under tax slab, then TDS will be deducted from the interest earned on the invested amount.
  • If the total income including interest income does not come under tax slab, they need to submit 15H/15G.
  • PAN is mandatory for the deposit amount of 50000 and above.

Eligibility & Procedure:
 

Below are eligible to open FD account:
 

  • Individuals
  • Individual jointly with another individual
  • Minor Individual with guardian
  • HUF
  • Sole proprietary concern
  • Clubs and associations
  • Firms
  • Joint stock companies
  • Any other entity that is not prohibited by RBI
Federal Tax Savings Deposit

Federal Tax Savings deposits, is suitable for those who want to save income tax. Under this scheme customer will get the tax benefits up to 1.5 lakh under Sec 80 C of Income Tax Act.  It comes with the lock in period of 5 years.


Features:
 

  • Minimum deposit of only Rs 100/-
  • Invest the additional deposit in multiples of 100
  • Lock-in period of 5 years
  • Withdrawal after the lock in period of 5 years
  • Interest will be compounded quarterly, and subject to deduction of TDS

Tax Deduction:
 

TDS will be deducted from interest accrued on investment under Federal Tax saving deposit scheme. Submission of PAN is mandatory under this scheme.

Eligibility & Procedure:
 

Those who want to invest in a tax saving scheme which can provide tax benefit under Sec 80C of Income Tax Act with stipulated lock in period of 5 years can go for this scheme. Individuals, Hindu Undivided Family (HUF), Trust, Partnership Firms, and Corporate Body can open accounts under this scheme.

Federal Savings Fund-
 

It is a recurring deposit scheme (RD) in which you deposit a fixed amount every month so as to get return over a period of time. If you have any short term goals and will need lump sum money in immediate future, this scheme will be a boon for you.


Total flexibility provided in choosing the amount of investment & term for the plan. On choosing Standing Instruction (SI) facility, your monthly installments will be directly deducted from your saving bank account.


Main Features:
 

Minimum investment of Rs. 50/- only with further contribution in multiple of Rs 10/-. There is no maximum limit for investment amount in this plan. For deposit either you can pay by cheque, or do online transfer. You can also visit the b ranch for making monthly payment of installments. But if you don’t have time and want hassle free method, you can fill the SI form. After that your monthly installments will be directly deducted from your saving bank account.


Tax Deduction:
 

  • If the total income of the customer, including income from interest comes under tax slab, then the TDS will be deducted from the interest earned on the invested amount.
  • If the total income of the customer, including income from interest does not comes under tax slab, they need to submit 15H/15G(not including company, firm or cooperative society) or Exemption certificate under Sec 197 (all holders) or any other eligible exemption certificate to the branch at the time of opening the deposit account and at the commencement of the every financial period for the following years.

Eligibility & Procedure:
 

Below are eligible to open Federal saving Fund:
 

  • Individuals
  • Individual jointly with another individual
  • Minor Individual with guardian
  • HUF
  • Sole proprietary concern
  • Clubs and associations
  • Firms
  • Joint stock companies
  • Any other entity that is not prohibited by RBI

Federal Bank Cash Certificate

The account holders of Cash Certificate fixed deposit account can double their deposit amount within a stipulated time period with zero risk. It gives handsome returns in form of interest you can opt for Federal Cash Certificates.
 

Features:
 

  • Minimum investment of Rs 1000/- only
  • No withdrawal facility before the interest due date
  • Interest amount will be compounded quarterly and reinvested till the maturity date
  • Automatic renewal facility available
  • Auto-credit facility of interest to the Federal bank saving account on maturity date
  • Nomination facility is allowed
  • Loan against cash certificate up to 90% of investment allowed

Tax Deduction:
 

  • Individual (Single or Jointly), Minor Individual with guardian, HUF, Sole proprietary concern, Clubs and associations, Firms, Joint stock companies etc
  • According to sec 206AA of Finance (No.2) Act, 2009, those who earn interest which is eligible for tax deduction has to submit PAN card to eliminate TDS deductions on their account
  • Total income including interest income comes under tax slab, then the TDS will be deducted from the interest earned on the invested amount.
  • If the total income of the customer, including income from interest does not comes under tax slab, they need to submit 15H/15G.
  • PAN is mandatory for the deposit amount of 50000 and above.

Millionaire Federal Savings Fund

Regular investment over a long period of time and you can become a millionaire at the time of maturity. You have to select the term between 3 to 10 years and your monthly contribution will be calculated automatically. It will advise how much you need to invest periodically to become a millionaire in selected time frame. It’s a very unique and flexible plan. Both Resident and NRI can open this deposit account. Customer can pay their installment directly from their Saving Bank or saving bank NRE account. There is also a feature of Standing Instruction if you will register to that the installment money will automatically be deducted from your account.
 

As a special feature one can avail loan on this deposit account against the available balance. Withdrawal before term is allowed under this plan, but for NRE deposits no interest should be paid before the tenure of one year.


One can earn the tax free returns in India and for NRI customer it is repatriable at no cost.


Tax Deduction:
 

If the total income of the customer, including income from interest comes under tax slab, then the TDS will be deducted from the interest earned on the invested amount.


If the total income of the customer, including income from interest does not comes under tax slab, they need to submit 15H/15G (not including company, firm or cooperative society) or Exemption certificate under Sec 197 (all holders) or any other eligible exemption certificate to the branch at the time of opening the deposit account and at the commencement of the every financial period for the following years.

How to open Fixed Deposit account with Federal Bank

It’s very easy and convenient to open a fixed deposits account with Federal bank. Customer either can directly visit nearest branch or can apply online through Paisabazaar website in less than a minute.