Federal Bank FD Interest Rates – Updated Guide

Key Insights

• Federal Bank FDs provide safe and stable returns with interest rates up to 7.2% for senior citizens.
   

• You can start with just ₹1,000, making it easy for everyone to invest.
   

• Flexible tenures from 7 days to 10 years help you plan according to your needs.
   

• Interest can be paid monthly, quarterly, half-yearly, yearly, or at the time of maturity.
   

• Senior citizens get higher interest rates, giving extra benefits on long-term savings.

Federal Bank Fixed Deposits (FDs) are a simple, flexible, and solid way to grow your savings. It provides options for both residents and NRIs. The interest rates range from about 3.00% p.a. to 6.70% p.a. for the general public and 3.50% p.a. to 7.20% p.a. for senior citizens.

You can start from just ₹1,000 and select a tenure between 7 days to 10 years. This guide will provide you with the details of Federal Bank FD types, including interest rates for 2025, features, eligibility, and withdrawal rules.

Federal Bank FD Interest Rates 2025 

Fixed Deposits with Federal Bank deliver flexibility with several tenure choices and safety for your savings, along with the returns.

Latest FD interest rates (domestic deposits < ₹3 crore)

Federal Bank has the following Interest rate slabs for the general public and senior citizens from August 2025:

Choose a tenure that suits you from the table and let money grow over time.

Bonus Tip: Always check for the enhanced interest rate slabs for a senior citizen. A small difference can add significant returns over a long-term deposit. 

Federal Bank Fixed Deposit Schemes

Federal Bank provides a variety of Fixed Deposit (FD) schemes to cater to different investment needs. 

1. Resident Term Deposit

This FD allows you to invest a lump sum amount for a fixed tenure, earning a predetermined interest rate. It's ideal for Indian residents and for those looking to grow their savings securely.

2. Tax Saving Deposit

This 5-year FD scheme helps you save on taxes under Section 80C of the Income Tax Act. The deposit has a mandatory 5-year lock-in period. It offers tax benefits, and the interest earned is taxable.

3. NRE Fixed Deposit

It is designed for Non-Resident External (NRE) account holders. It allows you to earn interest on your income earned outside India, which is returnable and tax-free in India.

4. NRO Fixed Deposit

It is for Non-Resident Ordinary (NRO) account holders. It helps manage income earned in India. The interest earned is subject to tax in India, and return facilities are available.

These are the FD schemes you can explore to find the one that best matches your savings goals. Each one is made to maximize your investment in the Federal Bank.

Features & Benefits of Federal Bank FD

Federal Bank Fixed Deposits provide several advantages that make them a reliable choice for investors:

• You can start your FD with as little as ₹1,000, making it accessible for small and large investors alike.
• The bank provides flexible tenures, ranging from just 7 days up to 10 years, allowing you to choose a period that fits your financial goals.
• You can receive interest payout monthly, quarterly, half-yearly, yearly, or at maturity, depending on your cash flow needs.
• Loans can be taken against your FD for quick access to funds without breaking your deposit.
• An auto-renewal feature ensures your FD continues after maturity to help your savings grow over time.
• You can add a nominee to your FD for extra security for your investment.
• Tax-saving FDs let you invest up to ₹1,50,000 under Section 80C to combine wealth growth with tax benefits.
• Senior citizens earn higher interest rates on their FDs, giving extra returns on long-term savings.

These features make Federal Bank Fixed Deposits a safe, flexible, and beneficial option for growing your money while keeping your financial goals in mind.

Comparing Federal Bank FD Interest Rates with Other Banks

Here’s a comparison of Federal Bank FD rates with other major banks:
 

Federal Bank excels with high rates for savings of medium and long terms.

Bonus Tip: Federal Bank provides limited-duration or festive FDs with better interest rates at times. Keep a watch to increase returns. 

Eligibility Criteria & Required Documents for Federal Bank FD Interest Rates

Who can open an FD?

• Indian residents (adult individuals)
• Minors (through guardian)
• Joint accounts
• Hindu Undivided Families (HUF)
• Partnerships, Trusts, Clubs / Associations
• Companies / Corporations 

Click here to know more.

Documents Required

• Completed FD / term deposit application form
• Identity proof: PAN card (usually mandatory), Aadhaar, Passport, Driving Licence (any of these)
• Address proof: Aadhaar, electric bill, telephone bill, ration card, passport (any of these).
• Age proof (for senior citizen benefit): Birth certificate, PAN, school certificate (any of these).
• Recent photograph(s)
• A valid ATM Card
• For NRIs: NRI status proof, remittance proof, valid passport, overseas address proof, etc.

Tax Implications on Federal Bank FD

Interest earned on a Federal Bank FD is fully taxable. It is added to your total income, and tax is applied as per your income tax slab.

• TDS Deduction:
  The bank cuts 10% TDS above ₹50,000 (regular customers) or ₹1,00,000 (senior citizens) in a year. If you don’t submit a PAN, TDS is 20%.
   
• Tax-Saving FD: You can claim a deduction under Section 80C (up to ₹1,50,000), but the interest is still taxable.
   
• Form 15G/15H: Submit these if your income is below the taxable limit to avoid TDS.

Federal Bank FD Premature Withdrawal & Closure Rules

Federal Bank allows premature withdrawal of Fixed Deposits, subject to certain conditions and penalties.

Eligibility for Premature Withdrawal:

• Regular FDs: Can be closed before maturity.
• Tax Saver FD (5-year lock-in): Premature withdrawal not allowed.
• Deposit Plus (Non-Callable FD): Premature withdrawal not allowed.

Penalty & Interest:

• Interest is recalculated for the actual period the FD was held.
• A penalty of 1% is applied to the applicable interest rate for early closure.

Penalty Structure (Deposits Below ₹2 Crore)
 

NRE Deposits
 

Smart Deposit Scheme
 

Click here to know more. 

How to Invest in Federal Bank FD

1. Net Banking (FedNet)

1. Go to the Federal bank portal and log in to FedNet (Personal Banking) using your User ID and password.
2. Click on Term Deposit from the menu.
3. Enter the FD details: deposit amount, tenure, payout option (monthly/quarterly/cumulative), and nominee.
4. Choose your savings account for debit and confirm.
5. Your Federal Bank FD is created easily, and you can download the receipt online.

2. Mobile Banking (FedMobile App)

1. Download and log in to the FedMobile app with your registered mobile number and MPIN.
2. Tap on FD / Investments and Open FD.
3. Enter the amount, tenure, scheme type, and nominee.
4. Confirm and submit.
5. Your Federal Bank FD is booked, and the receipt is available in the app.

3. At the Branch

If you prefer face-to-face service, visit the nearest Federal Bank branch.

1. Collect and fill out the FD application form.
2. Provide details such as the amount, tenure, payout option, and nominee.
3. Submit the form with a cheque/cash (and any necessary documents).
4. The bank will process it, and you’ll get your FD receipt.

Conclusion

Federal Bank FDs are a smart and secure way to save and grow your money. These FDs make it easy to plan for both short-term and long-term goals with flexible tenures, multiple payout options, tax benefits, and higher rates for senior citizens.

It provides a simple way to earn guaranteed returns while keeping your savings safe for all your investment needs.

FAQs related to Federal Bank FD Interest Rates

Q1. Can I open a joint FD with anyone in a Federal Bank?

Yes, you can open an FD jointly with your family member or spouse. Interest will be paid to all account-holders according to the joint arrangement.

Q2. Can Federal Bank FDs be transferred from one branch to another?

Yes. You can shift your FD to another branch if you change your residence. The bank will do this without breaking your deposit.

Q3. Will my FD Interest Rates change if I renew my deposit?

Yes, the new rate prevailing at the time of renewal will be charged, not the previous rate.

Q4. Can I add a nominee to my FD?
Yes, you can add a nominee at the time of FD opening or later.

Q5. Is a joint FD with an Indian resident possible for NRIs?

Yes. Joint FDs with residents are possible for NRIs, but interest payments and tax consequences could vary according to the type of account.