Fixed Deposits

Investing in fixed deposits is risk-free and rewarding. You can invest a lump sum amount in an FD (Fixed Deposit) account through both online and offline services. It’s the safest option to earn a stable rate of interest on the money you invest. At Federal Bank, you can start your Fixed Deposit investment journey with just ₹1,000. You can also check the interest rates for the fixed deposits you make with our bank. 

To learn more about fixed deposits and their interest rates, or if you wish to open an FD account for yourself, here’s a guide to help you through the process.

Different Types of Fixed Deposit (FD) Accounts

Different types of Fixed Deposits accounts are available in all the major banks in India. They are based on an individual's interest, age, bank policies and schemes, etc. Various types of FD accounts can be opened using an online service or visiting the nearest branch, irrespective of the age group. While there is no specific age criteria to open an FD account, a Fixed Deposit account for minors can be opened by his/her guardian.

At Federal Bank, you can opt for effective plans on your fixed deposit investment. Also, you can invest in a fixed deposit for a minimum period of 7 days and maximum tenure of 10 years.

We have major types of Federal Bank Fixed deposit plans for Resident customers include: 

• Resident Term Deposit: This is a standard fixed deposit plan wherein the interest rates vary depending on the investment tenure. 
• Tax Savings Deposit: Tax-saving deposit can help an individual save money as well as make money.  This is a great investment choice that not only allows you to reduce your tax liabilities but also provides competitive interest rates on the funds deposited. This type of fixed deposit allows you to claim tax deductions under Section 80C of the Income Tax Act. Investment in tax-saving deposit can help you claim a deduction of up to Rs. 1.5 lakhs each financial year. The minimum deposit amount is Rs. 100 only.

How to open a Fixed Deposit Account

Opening a Fixed Deposit account is easy. There are two methods of opening an FD account- offline and online method. Using an official banking app can also help you open an FD account online. Online FD  accounts can be opened either via Internet Banking or Mobile Banking.

For Internet Banking, customers should visit FedNet. For mobile banking, customers shall use the mobile banking app FedMobile. Below-mentioned are the Fixed Deposit account opening steps to guide you with the online process:

Online Method to open FD Account:

• Step 1 - Login to FedMobile App
• Step 2 - Select the ‘Investment’ option at the bottom bar of the home screen
• Step 3 - Click on ‘Bank Deposits’
• Step 4 - Tap on ‘Fixed Deposit’ and proceed
• Step 5 - Tap on ‘Interest Rates’ to view current interest rates offered for the respective deposit periods
• Step 6 - Enter the amount and select a scheme and duration
• Step 7 - Select the account and tap ‘Proceed’ 
• Step 8 - Review and ‘Confirm’ the details and enter the MPIN to complete the transaction

If you want to follow the traditional approach of opening an FD account via the offline method, then follow the below steps:

Offline Method to open FD Account:

• Simply visit the nearest branch and fill-in the FD opening form 
• Also, carry along the cheque with you, to debit the account.

By following these steps, you can successfully open your fixed deposit account at Federal Bank via FedMobile.

To track your investment/ FD, you can visit the ‘My Investment’ tab in our mobile application.

Eligibility Criteria & Documents Required for Fixed Deposit

Opening an FD account is quite easy with Federal Bank. The major criteria is that one must be an account holder with Federal Bank, and own necessary documents that include:

1. PAN and any KYC documents such as Voter ID/ Passport, PAN Card, Aadhar Card, Driving License, NREGA Job Card duly signed by an officer of the State Government
2. A Recent Photograph
3. A valid ATM card 
4. Customer profile- The bank checks the social/financial status, nature of business activity, information about his clients' business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc. 

Through our FedNet online service or offline service, you can open a Fixed Deposit account in a systematic manner.

Features and Benefits of Fixed Deposit

There are several benefits of opening a fixed deposit account in today’s times. Let’s learn which are those. 

Benefits:

• A fixed deposit online provides guaranteed returns on your investment with minimal to no risk.
• An individual can opt for monthly, quarterly, or yearly FD interest options and earn better returns than saving account deposits.
• Different types of loans can be availed against your Fixed Deposit investment.
• Under Section 80C of the Indian Tax Act, a fixed deposit investor can deduct a taxable amount of up to Rs. 1,50,000 from their total investment. However, the lock-in period for this tax-saving deposit is 5 years.

These are the benefits of owning a Fixed Deposit account, online or offline. Fixed Deposits are known for security and handsome returns. Let’s explore the features of Fixed Deposit at Federal Bank.

Features:

• An individual can open an FD account with just ₹1,000
• There’s no maximum amount criteria to invest in the fixed deposit account
• An individual can enable an automatic renewal facility on his/her FD investment
• The maturity amount will be directly credited to the main savings account
• An individual can add a nominee to its online FD account
• The joint FD accounts can be made using various combinations, such as individuals, minors with guardians, etc.
• An individual can avail of a loan against a fixed deposit at the Federal Bank. However, it may vary depending on the loan amount, tenure, transaction history, etc. 
• If you wish to withdraw a certain amount from your FD account before the maturity date, then you will have to pay the penalty charges.

Why to invest in FD?

Opening a Fixed Deposit Account can be considered one of the safest investment plans. It provides guaranteed and handsome returns. Most importantly, the returns won’t be affected by any market dynamics, making fixed deposits the most sought-after investment among adults as well as senior citizens. Let’s look at some other reasons why you should invest in a fixed deposit account. 

• Opening an online FD is convenient, rewarding, and secure, providing better returns with time.
• The Fixed Deposit investment can easily be tracked and monitored with utmost safety.
• Adding nominees to your Fixed Deposit account helps keep the investment transparent.
• With the help of the Fixed Deposit interest rate calculator, you can invest your hard-earned money wisely and achieve great returns. 

Whether you're planning to invest a modest amount or a substantial sum in an FD, our Federal Bank Fixed Deposit Interest Calculator helps you lock your investment and discover the interest you'll earn by the end of the deposit term.

What are the Fixed Deposit Interest Rates?

For a better understanding of your fixed deposit investment, every bank comes up with their interest rate calculator. FD interest rates explain the amount of returns you get at the end of your tenure and how systematically and wisely you can set an FD amount and tenure.

Fixed deposit interest rates vary based on several criteria, including the scheme, age, and tenure. At the Federal Bank, interest rates differ for the general public and senior citizens, with investment periods ranging from 7 days to 5 years and above. Additionally, we offer attractive schemes for our fixed deposit investors, such as the Federal Cash Certificate, which provides high returns in a short period.

At Federal Bank, the Fixed Deposit Interest Rate varies based on the tenure and the age group. For adults and minors with guardians, the FD interest rate begins at just 3% if the tenure is between 7 to 29 days and the interest rate goes up to 7.40% for a period of 777 days to less than 3 years. If someone wants to open an FD account for the maximum tenure of 5 years and above, the interest rate will stand at 6.60%.

On the other hand, the rate of interest for senior citizens is slightly higher and starts at 3.50% for a period of 7-29 days and the maximum rate of interest goes up to 7.90% for a period of 50 months.

For complete details on the interest rates, please refer here: https://www.federalbank.co.in/deposit-rate

Investment Tips on Fixed Deposits

You can maximise the returns on your fixed deposit investment with the right approach. Investing in FD is a safe, secure, and healthy financial decision. With zero risk, you can earn a good interest rate with all the major banks, including Federal Bank. As the fixed deposit is not subjected to the market dynamics and the returns are guaranteed, here’s a list of points to consider to maximise your fixed deposits returns .

• Opt for various schemes attributed to FDs that not only give better returns but also introduce you to different investment plans.
• Ensure that you thoroughly check the FD interest rates , and compare the returns. Based on the calculation, proceed with your fixed deposit investment to get handsome interests. 
• File your returns on time or be cognizant of tax laws for FD returns in order to avoid any unnecessary deduction.
• Avoid withdrawing premature amounts or be aware of penalty fees for the same before opening an FD account online.

Frequently Asked Questions- Fixed Deposits