Federal Bank FD rates currently range from 3.00% to 6.80% p.a. for regular customers, while senior citizens can earn up to 7.30% p.a. on deposits below ₹3 Crore.
The bank offers FD tenures from 7 days to 10 years. The highest return is available on the special 15-Month FD, while the 36-Month FD also offers a competitive rate for long-term investors.
Effective From: 03 June 2026
| FD Tenure | Regular | Senior Citizen |
|---|---|---|
| 7 Days – 29 Days | 3.00% | 3.50% |
| 30 Days – 45 Days | 3.25% | 3.75% |
| 46 Days – 90 Days | 4.25% | 4.75% |
| 91 Days – 180 Days | 4.50% | 5.00% |
| 181 Days | 6.00% | 6.50% |
| 182 Days – 270 Days | 5.50% | 6.00% |
| 271 Days – Less than 1 Year | 6.00% | 6.50% |
| 1 Year | 6.25% | 6.75% |
| Above 1 Year – Less than 15 Months | 6.40% | 6.90% |
| 15 Months (Highest) | 6.80% | 7.30% |
| Above 15 Months – Less than 36 Months | 6.40% | 6.90% |
| 36 Months | 6.75% | 7.25% |
| Above 36 Months – 10 Years | 6.40% | 6.90% |
📌 Important Federal Bank FD Points
- Minimum FD amount starts from ₹1,000
- Senior citizens receive an additional 0.50% interest benefit
- Interest on cumulative deposits is generally compounded quarterly
- Special tenures such as 181 Days, 15 Months, and 36 Months offer better returns than many standard tenure buckets
- Retail rates apply to deposits below ₹3 Crore
💡 FD Tip: Many investors automatically choose a 6-month or 1-year FD. However, Federal Bank’s special 181-Day FD currently pays 6.00% p.a., which is higher than the 182–270 day slab offering 5.50% p.a.
📌 Quick Insight: Federal Bank remains highly competitive among private banking institutions for overall asset stability. While smaller finance banks might display slightly higher optical interest numbers, Federal Bank provides a safer, more institutional risk-to-reward balance for conservative portfolios looking to outpace core inflation cycles.
⚠ Important: Premature closure of an FD generally attracts a 1% penalty on the applicable interest rate. If you may need money before maturity, choose the tenure carefully.
1. Core Types of Federal Bank FD Schemes
Federal Bank offers different FD schemes based on your savings goal, income needs, and investment amount.
1. Federal Bank Resident Term Deposit
This is the regular FD scheme offered by the bank.
- Tenure from 7 days to 10 years
- Minimum deposit starts from ₹100
- Available in both cumulative and non-cumulative options
- Suitable for most retail investors
2. Federal Cash Certificate
This is a cumulative FD where the interest is added back to the deposit.
- Interest compounds quarterly
- Full amount is paid at maturity
- Helps maximize long-term returns
Best For: Investors who do not need regular income.
3. FedFlexi Deposit
This scheme combines FD returns with savings account flexibility.
- Linked to your savings or current account
- Money can be withdrawn automatically when needed
- Remaining FD balance continues earning interest
Best For: Business owners and people who want emergency access to funds.
4. Federal Bank Tax Savings FD
Designed for investors looking to save tax.
- 5-year lock-in period
- Eligible for Section 80C tax benefits
- Interest rate up to 6.40% p.a. (General) and 6.90% p.a. (Senior Citizens)
- No premature withdrawal allowed
5. Deposit Plus
A special FD for large deposits.
- Minimum investment of ₹1 Crore
- Premature withdrawal not allowed
- Usually offers better rates than regular FDs
Best For: High-net-worth investors and businesses.
6. NRI Fixed Deposit Schemes
Federal Bank also offers FD options for NRIs.
- NRE Deposit
- NRO Deposit
- FCNR Deposit
- RFC Deposit
These schemes help NRIs manage foreign earnings and savings in India.
💡 Simple Tip – If you need regular monthly income, choose a non-cumulative FD. If your goal is higher maturity value, a cumulative FD like the Federal Cash Certificate is usually the better option.
2. Key Features & Important Benefits
Federal Bank FDs come with several useful features that make them suitable for both short-term and long-term investors.
1. Start with a Small Amount
You can open a Federal Bank FD with a minimum deposit of ₹1,000, making it accessible for most investors.
2. Flexible Tenure Options
Choose a tenure based on your financial goal.
- Minimum tenure: 7 days
- Maximum tenure: 10 years
Whether you’re saving for a few months or several years, there is an option available.
3. Extra Interest for Senior Citizens
- Senior citizens aged 60 years and above receive an additional 0.50% p.a. interest over regular FD rates.
- Example: If the regular FD rate is 7.00%, eligible senior citizens may receive around 7.50%.
4. Loan Against FD Facility
- Need money urgently? You don’t have to break your FD.
- Loan or overdraft available up to 90% of the FD amount
- Interest is usually 1% to 2% higher than your FD rate
- Example: If your FD value is ₹2 lakh, you may be eligible for a loan of up to ₹1.8 lakh.
5. Multiple Interest Payout Options
You can choose how you want to receive your interest:
- Monthly payout
- Quarterly payout
- Half-yearly payout
- Annual payout
- At maturity
This gives flexibility for both regular income seekers and long-term investors.
6. Safe & Protected Deposits
Federal Bank is regulated by the RBI, and eligible deposits are covered under DICGC insurance up to ₹5 lakh per depositor per bank.
💡 Practical Tip – Many people break their FD during emergencies and lose part of their interest. If possible, use the loan against FD facility first. Your FD continues earning interest while you get access to funds when needed.
3. Premature Withdrawal Rules & Penalties
Federal Bank allows premature withdrawal on most regular FDs, but a penalty may apply.
1. Standard Penalty
- Premature closure penalty: 1%
- The bank first checks the applicable FD rate for the period your money actually stayed with the bank.
- After that, the bank reduces the rate by 1%.
2. Simple Example
Suppose Kanak Tomar opens a ₹2 lakh FD at 7.00% for 3 years. After 1 year, she decides to close the FD.
- Applicable 1-year FD rate = 6.50%
- Premature withdrawal penalty = 1%
- Final interest rate paid = 5.50%
This means Kanak will receive interest at 5.50%, not the original 7.00%.
3. NRE FD Special Rule
- If an NRE FD is closed before completing 1 year, no interest is paid.
- Only the principal amount is returned.
Practical Tip – If you may need money in the near future, choose a shorter FD tenure or use the loan against FD facility instead of breaking the deposit early.
4. Federal Bank FD Maturity Calculation with Examples
Federal Bank calculates returns on cumulative FDs using quarterly compounding, which means interest is added every 3 months.
FD Formula: A = P × (1 + r/n)^(n × t)
Where:
- A = Maturity Amount
- P = Deposit Amount
- r = Annual Interest Rate
- n = 4 (Quarterly Compounding)
- t = FD Tenure in Years
Example 1: Regular Investor (1 Year FD)
- Deposit Amount: ₹1,00,000
- Interest Rate: 6.80% p.a.
- Tenure: 1 Year
- Maturity Amount: ₹1,06,975
- Interest Earned: ₹6,975
Example 2: Regular Investor (400-Day Special FD)
- Deposit Amount: ₹1,00,000
- Interest Rate: 7.40% p.a.
- Tenure: 400 Days
- Maturity Amount: ₹1,08,264
- Interest Earned: ₹8,264
📌 By choosing the 400-day FD instead of a regular 1-year FD, the investor earns about ₹1,289 extra interest.
Example 3: Senior Citizen (400-Day Special FD)
- Deposit Amount: ₹1,00,000
- Interest Rate: 7.90% p.a.
- Senior Citizen Benefit: +0.50%
- Tenure: 400 Days
- Maturity Amount: ₹1,08,837
- Interest Earned: ₹8,837
💡 Simple Tip – Special FD tenures like 400 days, 444 days, or 555 days often offer better rates than regular 1-year FDs. Before investing, always compare these special tenures because even a small rate difference can add thousands of rupees to your final maturity amount.
5. Tax Rules & TDS on Federal Bank FD
FD interest is taxable in India and should be reported while filing your Income Tax Return (ITR).
1. FD Interest Is Taxable
- FD interest is added under “Income from Other Sources”
- Final tax depends on your income tax slab
Example: If you earn ₹20,000 FD interest and fall in the 20% tax slab, the tax liability will be higher than someone in the 5% slab.
2. TDS Rules
Federal Bank may deduct TDS if your annual FD interest crosses:
- ₹40,000 for regular investors
- ₹50,000 for senior citizens
3. PAN Card Matters
- PAN linked → TDS deducted at 10%
- PAN not linked → TDS deducted at 20%
A missing PAN can significantly reduce the interest credited to your account.
4. Form 15G & Form 15H
If your total annual income is below the taxable limit:
- Submit Form 15G (Regular Investors)
- Submit Form 15H (Senior Citizens)
This can help avoid TDS deduction.
💡 Practical Tip – Many people think “No TDS” means “No Tax.” That’s not correct. Even if the bank does not deduct TDS, FD interest is still taxable and should be declared while filing your ITR.
6. How to Open a Federal Bank FD
You can open a Federal Bank FD online or by visiting the nearest branch.
Option 1: Request a Call Back
If you are a new customer, visit the Federal Bank FD enquiry page and submit your details.
- Name
- Mobile Number
- Email ID
- City
- Preferred Product
A bank representative may contact you and guide you through the FD opening process.
Option 2: Through FedMobile App
If you already have a Federal Bank account:
- Open the FedMobile App and log in.
- Go to the Investments section.
- Select Open Fixed Deposit.
- Enter the deposit amount.
- Choose your FD tenure (such as the 400-day special FD if available).
- Select the interest payout option.
- Add nominee details and confirm the request.
Your FD will be created instantly, and the receipt can be downloaded from the app.
Option 3: Visit a Federal Bank Branch
You can also visit the nearest branch and open an FD offline. Carry:
- PAN Card
- Aadhaar Card
- Passport-size photograph
- Existing bank account details (if required)
Deposit the amount through cheque, cash (as per rules), or account transfer, and the bank will issue your FD receipt.
💡 Insight: If you want the highest maturity value, choose a Cumulative FD. If you need regular income every month, choose the monthly interest payout option instead.
Federal Bank vs CUB vs TMB FD Rates Comparison
| FD Tenure | Federal Bank (General / Senior) | City Union Bank (General / Senior) | TMB Bank (General / Senior) |
|---|---|---|---|
| Highest FD Rate | 6.80% / 7.30% (15 Months) | 7.25% / 7.50% (555 Days) | 7.25% / 7.70% (567 Days) |
| 1-Year FD | 6.25% / 6.75% | 6.65% / 6.90% | 6.80% / 7.30% |
| 3-Year FD | 6.75% / 7.25% | 6.50% / 6.75% | 6.70% / 7.20% |
| Tax Saving FD (5 Years) | 6.40% / 6.90% | 6.75% / 6.75% | 6.70% / 7.20% |
📌 Quick Observation
- Highest Senior Citizen Rate: TMB Bank (7.70% p.a.)
- Highest General FD Rate: CUB & TMB (7.25% p.a.)
- Best 3-Year FD Rate: Federal Bank (7.25% for senior citizens)
- Best Tax Saver FD Rate: TMB Bank (7.20% for senior citizens)
💡 Example
Suppose you invest ₹5 lakh for 1 year:
- At 6.25%, interest is around ₹31,250
- At 6.80%, interest is around ₹34,000
That’s a difference of about ₹2,750 on the same investment amount, which is why comparing FD rates before investing is important.
Frequently Asked Questions
Can senior citizens get extra interest on all investment tenures?
Yes, Federal Bank consistently adds a fixed 0.50% interest bonus across all available domestic time horizons for individuals aged 60 and above.
What is the minimum and maximum tenure for a Federal Bank FD?
The investment tenure is highly flexible. You can lock in your funds for a short-term micro-window of 7 days up to a maximum long-term horizon of 10 years.
Can I withdraw my fixed deposit before the maturity date?
Yes, premature withdrawal is allowed on standard FDs. However, Federal Bank levies a 1.00% penalty fee on the interest rate. The interest paid will be 1% lower than the rate applicable for the period the deposit actually remained with the bank. Note: “Deposit Plus” schemes are non-callable and do not allow premature withdrawal.
Can I get a loan or overdraft against my fixed deposit?
Yes. Instead of breaking your FD and paying a penalty, you can opt for a loan or an overdraft facility against your asset. Federal Bank allows you to borrow up to 90% of the net accrued deposit value at highly competitive interest rates.
What is the Federal Bank Tax Shield scheme?
It is a tax-saving fixed deposit that offers a tax deduction under Section 80C of the Income Tax Act. It comes with a mandatory statutory lock-in period of 5 years, meaning you cannot withdraw the money prematurely or take a loan against it. It offers 6.40% p.a. for standard investors and 6.90% p.a. for senior citizens.
How does tax (TDS) apply to Federal Bank FD returns?
Tax Deducted at Source (TDS) is subtracted if your total annual interest income across the bank exceeds ₹40,000 (or ₹50,000 for senior citizens) in a financial year. The standard TDS rate is 10% if your PAN is updated, and 20% if it is not.
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