Deposit – Terms & Conditions
General Instructions and Terms and Conditions for opening of Resident & NRE Term Deposits
- Only NRE & Resident Term Deposits can be opened online.
- Debit Account should be a Savings, Current or Overdraft account.
- Deposit can be opened only in the name of the primary account holder of the debit Account.
- Online requests received after 7 PM are likely to be opened with effective date as next working day.
- All the fixed deposit transactions executed on a bank holiday will be processed on next working day only.
- FSF – Monthly/Quarterly/Half Yearly /Yearly: Recurring deposit where Monthly/Quarterly/Half Yearly /Yearly denote the periodicity of the recurring instalments to be remitted.
- Cash Certificate: Term deposit where interest is compounded quarterly and reinvested on maturity. It is suited for a depositor who does not require interest to be paid every month/quarter etc.
- FD – Monthly/Quarterly/Half yearly/yearly/Int on maturity: Deposit scheme where interest will be paid monthly/quarterly/half yearly/yearly/on maturity. Except in the case of FD – Interest on maturity, interest will be transferred to the account from which the deposit was funded in the selected periodicity of the deposit.
- Minimum amount for FSF: Rs.50/- and in multiples of Rs.10/-
- Minimum amount for Cash Certificate and FD: Rs.1000/-
Resident FSF: For FSF-Monthly, minimum period is 6 months.
In all other cases, minimum period will be 3 times of the periodicity of instalments, i.e. for a Resident FSF–Quarterly, the minimum period should be 9 months. Likewise, for Resident FSF Half Yearly, the minimum period should be 18 months.
NRE FSF: For NRE FSF Monthly & Millionaire FSF, minimum period is 1 year. In all other cases, minimum period will be 3 times of the periodicity of instalments subject to a minimum period of 1 year i.e. for an NRE FSF- Quarterly, the minimum period should be 12 months. Likewise, for NRE FSF Half Yearly, the minimum period should be 18 months.
Resident Cash Certificate: Minimum period - 6 months.
NRE Cash Certificate: Minimum 1 year
Resident FD group: Minimum period - 7 days.
NRE FD Group: Minimum period 1 year.
Maximum period will be 10 years in all cases (120 months)
Interest rates for Senior citizen/ Staff in Resident deposits
- If the primary account holder of the debit account is a senior citizen, the term deposit will be opened with interest rate applicable to senior citizens.
- If the primary account holder is staff, term deposit will be opened with interest rate applicable to staff.
- However, presently term deposit/FSF cannot be opened with an additional rate of interest for staff + Senior citizens (Sr. Citizen Staff). In this case he / she will have to apply at branch for the same.
- No additional benefit is applicable for senior citizen and staff in case of NRE deposits.
Scheduling recurring deposit instalment
Customer can schedule recurring payment for FSF by selecting the SI date during creation of the deposit. SI will be registered in the debit account only.
Closing of Resident/NRE Term Deposit opened online
For closing accounts where deposit receipts are already printed, customers have to approach the branch and submit the same. The proceeds of the term deposit will be transferred only to the debit account from which it was funded.
Term Deposits will be automatically renewed on maturity for a similar Term on same terms and conditions (except rate of interest). Rate of interest payable on the deposit thus renewed will be the rate prevailing on the date of renewal.
Interest rate applicable to the term deposit will be the interest rate prevailing as on the date of opening the term deposit.
- Interest payable for premature closure of Resident/NRE Term Deposit / FSF will be the deposit rate applicable as on the date of opening of the deposit for such period for which the deposit has remained with the Bank. For NRE deposits, no interest will be paid if the deposit is closed before completion of 1 year from the date of opening.
- Pre closure penalty of 1% will be levied on resident deposits of any principal amount, if the period of original deposit is above 15 days, i.e., interest rate applicable for the covered period will be reduced by 1%. If the period of original deposit is up to 15 days, premature closure penalty would not apply, provided the principal amount does not exceed ₹ 15 lacs.
- Penalty of 1% for premature closure is applicable for all NRE term deposits irrespective of the deposit amount, for deposit accounts opened/renewed on or after 14.06.2018
- No interest is payable if NRE Term deposit is closed before completion of 1 year. Pre-payment penalty is not applicable to for NRE Term deposits closed before completion of 1 year.
- Premature closure charges of ₹ 150 plus GST are applicable for FSF accounts (recurring deposits) if closed prematurely within a year from the date of opening.
- In case of Resident Fixed Deposits, FSF and Cash Certificates applicable TDS shall be deducted from the interest credited to operative account/ term deposit periodically.
- Income tax will be deducted as per the law applicable and in case the depositor's total income including the interest earned on deposit does not come under the purview of income tax, form15H/15G together with PAN details has to be submitted by the depositor to the branch after opening the term deposit and at the beginning of the Financial Year in the subsequent Financial Years.
- With effect from 01 July 2011, for opening Term deposit exceeding Rs. 50,000/- with the bank, it is mandatory to quote Permanent Account Number of the customers or submit Form 60/61, duly signed, in case the customer has no PAN number. In the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & TDS at the highest rate will be applicable.
- As per section 206AA introduced by Finance (No. 2) Act, 2009 effective April 01, 2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits.
- Kindly visit your Federal Bank branch with your PAN card (original & copy) to get the same updated in bank records. Resident customers can also apply for PAN through Federal Bank Branches.
NRE Deposits are 100% tax free and fully repatriable.
Online nomination facility is only available while opening new term deposits. By using the said facility for registering nominations online, the Depositor is deemed to have confirmed that the designated Nominee is a natural person, well known to the Depositor and who is not otherwise disqualified from acting as a nominee under applicable laws. In case an artificial/juridical/non-natural person is designated as the Nominee, the said nomination would be held invalid and Bank would be under no obligation to honour the same. For availing nomination facility in other applicable services, please submit a filled up & signed nomination form to the branch. Please click here to download the nomination form.
Other terms and conditions
- Premature withdrawal is subject to the terms and conditions as stipulated by Bank as per the specific schemes and as per RBI /IBA rules in force.
- The rules and regulations governing term deposit/FSF is subject to change according to the guidelines issued by RBI/IBA etc from time to time.
- The term deposit under NRO Category cannot be opened through online mode.