Federal Savings Fund is a simple, yet brilliant recurring deposit scheme to save small amounts of money each month to plan for your future needs or to save towards a goal.
What's more, you can also keep track of your deposit through Internet Banking.
Key Features are:
- Minimum deposit amount for Federal Savings deposit is just Rs. 50/- and additional contribution in multiples of Rs.10/-
- There is no maximum amount for this recurring deposit scheme
- Standing instruction facility will enable automatic transfer of installment amount from your savings account
- Interest cannot be withdrawn before deposit becomes mature and interest is paid on maturity on quarterly compounding basis
- Loan facility is available for Federal Savings Deposit against the amount present in your deposit account, subject to terms and conditions
- Savings Funds have a minimum deposit period of 6 months and maximum deposit period is 10 years
From June 1, 2015, Tax Deduction at Source (TDS) will be applicable on interest paid/ accrued on Resident Recurring Deposits. Deposit holder may claim exemption from TDS by submitting Form 15G / 15H (other than company, firm or co-operative society)/ Exemption Certificate under Section 197 (in case of all holders)/ or any other Tax Exemption Certificate with the Bank, subject to eligibility.. Such form or tax exemption certificate has to be submitted every financial year for each recurring deposit held with the Bank.
Who can open Federal Savings Fund Deposit?
- Individuals jointly with other Individuals
- For Minor Individuals by Guardian
- Sole proprietary concerns
- Joint stock companies
- Any other entity not prohibited by RBI
How to open a Federal Savings Fund Deposit?
Opening a Federal Savings Fund Deposit is very easy. You can open the deposit either as online or offline.
If you do not have Internet banking facility activated, please visit your branch for opening Federal Savings Fund deposit.