Author
LoansJagat Team
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13 Min
01 Apr 2025
Federal Bank Current Account – Features, Benefits & Application Guide
Rohan recently started a business, and as sales grew, managing daily transactions became challenging with a savings account due to its limits and lack of business-friendly features.
A friend suggested a Federal Bank Current Account, designed for businesses with higher transaction limits, easy fund transfers, and dedicated banking services. With this account, Rohan could manage his finances smoothly, enjoy digital banking solutions, and access efficient customer support anytime.
Here are some key transactions that Rohan can perform with his Federal Bank Current Account:
Transaction Type | Description | Usage Example |
Deposits | Added money to the account. | ₹10,00,000 |
Withdrawals | Took out money for business expenses. | ₹3,00,000 |
NEFT (National Electronic Funds Transfer) | Paid a supplier. | ₹5,00,000 |
RTGS (Real-Time Gross Settlement) | Sent a high-value payment to a vendor. | ₹8,00,000 |
IMPS (Immediate Payment Service) | Urgent payment to an employee. | ₹50,000 |
UPI Transactions | Paid a freelancer. | ₹25,000 |
Cheque Payment | Issued for office rent. | ₹1,50,000 |
Demand Draft (DD) | Payment for equipment. | ₹4,00,000 |
Online Banking | Paid utility bills. | ₹20,000 |
POS Payment | Bought office supplies. | ₹15,000 |
With a Federal Bank Current Account, Rohan easily managed over ₹32,00,000 in a day without any restrictions. This flexibility made his business transactions fast, efficient, and hassle-free.
Types of Federal Bank Current Accounts
Federal Bank offers a diverse range of 16 types of current accounts, catering to the unique needs of businesses, entrepreneurs, and professionals. These accounts are designed to provide flexibility, convenience, and tailored banking solutions to meet various financial requirements.
1. Freedom Current
2. Current Plus
3. FedTrade
4. Fed Trade 50
5. FedTrade Plus
6. FedVanijya
7. Fed Vanijya Plus
8. Fed Prime
9. Fed Sahakari
10. Shreni Premium Current Account
11. Shreni Current Account
12. Fed Arogya
13. Fed Chit
14. Sweep Plus Current Account
15. ESCROW Account
16. RERA Project Account
Key Features & Benefits of Types of Federal Bank Current Account
1. Freedom Account
- Average monthly balance of 5,000
- Visa Silver (Imperio Business) Debit Card
- Payable at par chequebook at a nominal price
- Free monthly email statements
- Internet Banking, Mobile Banking, NEFT, and RTGS facilities are available
- Free E-mail alerts
- Sound Box facility can be offered for all current accounts (Individual or non-individual)
2. Current Plus
- Average monthly balance of 10,000
- 20 free cheque leaves per half-year
- Visa Silver (Imperio Business) Debit Card
- Free monthly email statements
- Internet Banking and Mobile Banking facilities are available
- Free E-mail alerts
- Free Demand Draft, 1 per day
- NEFT and RTGS transactions are available
- 25% concession on service charges for the collection of outstation cheques
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
3. FedTrade
- Average monthly balance of 25,000
- Free 2 0 cheque leaves per quarter
- Visa Silver (Imperio Business) Debit Card
- Free monthly email statements
- Internet Banking and Mobile Banking facilities are available
- Free email alerts and free mobile alerts
- Free Demant Draft, 2 per day
- NEFT and RTGS facilities are available
- 50% concession on service charges for the collection of outstation cheques
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
4. Fed Trade 50
- Average monthly balance of 50,000
- 20 free cheques per month
- Visa Silver (Imperio Business) Debit Card
- Free monthly email statements
- Free Internet Banking and Free Mobile Banking
- Free Email alerts and free Mobile Alerts
- Free Demand Drafts, 5 per day
- NEFT and RTGS facilities are available
- 50% concession on service charges for the collection of outstation cheques
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
5. Fed Trade Plus
- Average monthly balance of 1,00,000
- 50 free cheques per month
- Visa Platinum (Celesta Business) Debit Card
- Free monthly email statements
- Free Internet Banking
- Free Mobile Banking
- Free E-mail alerts
- Free mobile alerts
- Free Demand Draft, 15 per day
- Free NEFT and RTGS facility
- 75% concession on service charges for the collection of outstation cheques
- 50% concession in processing fee/ administration fee for all retail loan products
6. Fed Vanijya
- Average balance of 5,00,000
- 150 free cheque leaves per month
- Free monthly email statements
- Visa Platinum (Celesta Business) Debit Card
- Free Internet Banking
- Free Mobile Banking
- Free E-mail alerts
- Free mobile alerts
- Free Demand Drafts, 25 per day
- Free NEFT and RTGS facility
- Free collection of outstation cheques
- 50% concession in Processing Fee/ Administration fee for all retail loan products
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
7. Fed Vanijya Plus
- Free unlimited cheque leaves
- Free monthly email statements
- Visa Platinum (Celesta Business) Debit Card
- Free Internet Banking
- Free Mobile Banking
- Free E-mail Alerts
- Free Mobile Alerts
- Free unlimited demand drafts
- Free NEFT and RTGS facility
- Free collection of outstation cheques
- 50% concession in Processing Fee/ Administration Fee for all retail loan products
- Average monthly balance of 10,00,000
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
8. Fed Prime
- Average monthly balance of 25,00,000
- Free Unlimited Cheque leaves
- Free monthly email statements
- Visa Platinum (Celesta Business) Debit Card
- Free Internet Banking
- Free Mobile Banking
- Free E-mail Alerts
- Free Mobile Alerts
- Free unlimited demand drafts
- Free NEFT and RTGS facility
- Free collection of outstation cheques
- 50% concession in Processing Fee/ Administration Fee for all retail loan products
- Average monthly balance of 10,00,000
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
9. Fed Sahakari
- Free Unlimited Cheque leaves
- Free monthly email statements
- Free Internet Banking
- Free Mobile Banking
- Free E-mail Alerts
- Free Mobile Alerts
- Free unlimited demand drafts
- Free NEFT and RTGS facility
- Free collection of outstation cheques
10. Shreni Premium Current Account
- AMB of 50,00,000
- Complimentary Celesta accounts for Beneficial owners
- Debit Card with lounge facilities
- Rent a free POS terminal and soundbox configured to the Shreni CA Premium Account
- Higher cash deposit limit
- Salary accounts for the employees of the Trust/Association/Club/Society, depending on the salary pay structure
- Free Locker facility
11. Shreni Current Account
- Nil AMB
- Complimentary Imperio accounts for beneficial owners
- Discounted POS/Soundbox configured to the Shreni CA Account
- Salary accounts for the employees of the Trust / Association/ Club/ Society / depending on the salary pay structure
- Higher cash deposit limit
- Free locker facility
12. Fed Arogya
- Fee at par cheque leaves
- Free monthly Email statements
- Visa Platinum (Celesta Business) Debit Card
- Free Internet Banking
- Free Mobile Banking and Free Mobile Alerts
- Free E-mail alerts
- Free Demand Draft
- Free NEFT and RTGS facility
- Free collection of outstation cheques
13. Fed Chit
- Average monthly balance of 1,00,000
- Free Unlimited Cheques
- Free monthly email statements
- Free Internet Banking
- Free Mobile Banking and Free Mobile Alerts
- Free Demand Draft
- Free NEFT and RTGS facility
- Free collection of outstation cheques
- Sound Box facility can be offered for all current accounts (individual or non-individual)
- POS facility can be offered only for non-individual current accounts
14. Sweep Plus Current Account
- Auto sweep facility
- 50 free cheque leaves per month
- Celesta Business Debit Card with lounge access and no issuance charges
- Digital Banking
- Minimum Balance Requirement- 3,00,000
- Free services - Demand Drafts, IMPS/NEFT/RTGS transactions
- No account maintenance charges
15. ESCROW Account
- Project Financing
- Debt repayments
- IPO collections of listed companies
- Liquidations
- Mergers and Acquisitions
- Countertrade arrangements in foreign trade
- FDI - for non-trade resident corporates for acquisition/transfer of shares/debentures through pen offers/ delisting/ exit offers
- Transfer of intellectual property rights
- Handling of judgment money in the case of limitations
16. RERA Project Account
- Separate Accounts for Each Project
- 3-Account Structure
- Transparency & Accountability
- Regulatory Compliance
- Efficient Project Management
- Banking Convenience
Federal Bank Current Account Fees & Charges
Category | Free Limit (Per Month) | Charges Beyond Free Limit |
Cash Deposit Limit | 10 times the previous month’s AMB, with a minimum of ₹2,00,000 and a maximum of ₹5,00,00,000 per month. | ₹4.00 per ₹1,000 or part thereof (Minimum ₹50 per remittance, Maximum ₹20,000 per remittance). |
CDM Remittance | Eligible for a 50% concession on charges beyond the free limit. | As per standard charges. |
Newly Opened Accounts | No charges for the first month. | Charges are applicable from the second month onwards. |
General Free Limit | Remittance up to ₹2,00,000 per month is free for all accounts. | Standard charges apply beyond this limit. |
Federal Bank Current Account Interest Rates
To know about interest rates and charges of the federal bank's current account, click here
Federal Bank Current Account Eligibility
The Federal Bank Current Account is available for a wide range of business entities, including:
- Individuals & Sole Proprietors – Self-employed professionals and business owners operating as sole proprietorships.
- Partnership Firms – Registered or unregistered firms engaged in trade, commerce, or services.
- Joint Stock Companies – Private Limited (Pvt. Ltd..), Public Limited (Ltd..) companies, and other incorporated entities.
- Other Business Entities – Trusts, Associations, Societies, LLPs, NGOs, and any legally recognised business organisation.
Required Documents for Federal Bank Current Account
Entity Type | Required Documents |
Individuals | Identity Proof (Passport, Driving Licence, PAN Card, Voter ID, Aadhaar, NREGA Job Card) Address Proof (Passport, Driving Licence, Voter ID, Aadhaar, NREGA Job Card) Recent Photograph Customer Profile Exceptions: Aadhaar is not mandatory for Non-Resident Individuals and residents of Jammu & Kashmir, Assam, or Meghalaya. |
Companies | Certificate of Incorporation Memorandum & Articles of Association Board Resolution & Power of Attorney for authorised personnel Officially valid documents of authorised signatories Financial Statements (Profit & Loss and Balance Sheet) for the past three years |
Partnership Firms | Registration Certificate (if registered) Partnership Deed An officially valid document for the authorised signatory Financial Statements (Profit & Loss and Balance Sheet) for the past three years |
Sole Proprietorship | Any two of the following: Registration Certificate (if applicable) Shop & Establishment Act License Sales & Income Tax Returns CST/VAT Certificate Certificate issued by Sales Tax/Service Tax/Professional Tax authorities Certificate of Practice (CA, CS, CMA, Medical Council, etc.) Importer Exporter Code (IEC) Complete Income Tax Return (not just acknowledgment) Utility Bills (Electricity, Water, Landline) in the firm's name |
Trusts & Foundations | Registration Certificate Trust Deed An officially valid document for an authorised signatory Constitution & Tax Certificates |
Unincorporated Associations or Bodies of Individuals | Resolution of the managing body Power of Attorney for authorised personnel An officially valid document for an authorised signatory Additional documents as required to establish legal existence |
How to Open a Federal Bank Current Account Online?
Step 1: Visit the official website of the Federal Bank.
Step 2: In the navbar, hover your cursor over the “Business” section. You will see the “Current Account” section in that. Click on that.
Step 3: After clicking on that, you will see different types of Current Accounts provided by the Federal Bank.
Step 4: In the navbar above, you can see an option “open an Account.” Click on that. After clicking on that, scroll down and click on the “Business” section.
Step 5: Click on the “Explore More” button. Click on any of the Federal Bank Current Accounts you want. After clicking on the “Explore button, scroll down and you will see a “Get a Call Back” button. Click on that.
Step 6: The Bank will get in touch with you very soon.
How to Open a Federal Bank Current Account Offline?
Visit the Nearest Branch
- Locate a Federal Bank branch near you and visit during working hours.
Collect & Fill the Application Form
- Request a Current Account Opening Form from the bank representative.
- Fill in the required details carefully.
Submit Required Documents
- Provide KYC documents based on your business entity (Individuals, Sole Proprietorship, Partnership, Company, Trust, etc.).
- Ensure all documents are self-attested and verified as per bank norms.
Initial Deposit
- Deposit the minimum required balance as per the selected current account type.
Verification & Processing
- The bank will verify your documents and process the application.
- You may receive a call or visit from a bank representative for verification.
Account Activation
- Upon successful verification, the current account will be activated.
- You will receive your account details, chequebook, debit card (if applicable), and online banking access.
Federal Bank Current Account vs Competitor Banks
Feature | Federal Bank | HDFC Bank | ICICI Bank | Axis Bank | SBI Bank |
Minimum Balance | ₹5,000 – ₹1,00,000 (Varies by account type) | ₹10,000 – ₹1,00,000 | ₹10,000 – ₹25,000 | ₹10,000 – ₹50,000 | ₹10,000 – ₹5,00,000 |
Free NEFT/RTGS/IMPS | Yes | Charges Apply | Charges Apply | Charges Apply | Yes |
Cash Deposit Limit | Yes | Yes | Yes | Yes | Yes |
Business Debit Card | Free for select accounts | Available (Charges apply) | Available (Charges apply) | Available (Charges apply) | Available (Charges apply) |
Interest on Balance | No Interest | No Interest | No Interest | No Interest | No Interest |
Digital Banking Services | Net Banking & Mobile App | Net Banking & Mobile App | Net Banking & Mobile App | Net Banking & Mobile App | Net Banking & Mobile App |
UPI/QR Code Facility | Yes | Yes | Yes | Yes | Yes |
Account Opening Process | Online & Offline | Offline/Branch Visit | Online & Offline | Online & Offline | Offline/Branch Visit |
- Federal Bank provides higher cash deposit limits, free NEFT/RTGS for select accounts, and a lower minimum balance compared to competitors.
- HDFC, ICICI, and Axis Bank require higher minimum balances and have transaction charges for NEFT/RTGS.
- SBI offers free NEFT/RTGS but has lower cash deposit limits compared to Federal Bank.
Conclusion
Federal Bank's Current Account offerings, including the Freedom Current Account, provide a balanced mix of features and affordability for businesses of all sizes. With a low minimum balance requirement of ₹5,000, free RTGS/NEFT transfers, and unlimited cheque leaves and demand drafts, it is a cost-effective choice for businesses that require frequent banking transactions.
Compared to competitors, Federal Bank stands out for its unlimited transaction benefits and strong digital banking services, making it suitable for businesses that prioritise convenience and seamless banking. However, businesses with higher transaction volumes or specialised banking needs may also consider other banks based on factors like branch network, loan benefits, and additional service waivers.
Overall, Federal Bank Current Accounts are a reliable and efficient option for entrepreneurs, professionals, and business owners looking for a feature-rich banking experience with reasonable costs.
FAQ’s
What is the minimum balance requirement for a Federal Bank Current Account?
The Freedom Current Account requires a monthly average balance of ₹5,000.
What happens if I do not maintain the required balance?
A penalty of ₹200 is charged for non-maintenance of the monthly average balance.
Are RTGS/NEFT transactions free?
Yes, Federal Bank offers free RTGS/NEFT fund transfers for its current account holders.
Can I get unlimited cheque leaves and demand drafts?
Yes, Freedom Current Account provides unlimited cheque leaves and demand drafts for free.
How can I open a Federal Bank Current Account?
Visit the nearest Federal Bank branch, submit the KYC documents, and complete the application process.
Other Bank Current Accounts | |||
About the Author
LoansJagat Team
We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?
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