Federal Bank is also giving fixed deposit options for NRI Banking customers staying in Australia, Canada, and Gulf side like Dubai or Qatar. Here you have two main choices. You can keep money in Indian Rupees through NRE or NRO account, or you can deposit in foreign currency like AUD, CAD, or USD using FCNR(B) — that one mainly people take to avoid exchange rate problem.
- The interest is not one fixed number. Federal Bank NRI FD rates are roughly between 3.00% to 7.40% per year, depending on the account type and deposit size.
- For normal NRE and NRO deposits below ₹3 crore, the maximum rate is about 6.70% per year for a 3-year period.
Senior citizens can get an extra 0.50% interest, but only on NRO deposits. On NRE and FCNR deposit accounts, generally, no additional benefit is given.
Types of Federal Bank NRI Fixed Deposits
There is no single NRI FD due to the RBI rules. Federal Bank has three different deposits, and each is for a different type of money.
- NRE FD = Salary or savings coming from abroad
- NRO FD = Income earned inside India, like rent or pension
- FCNR-B FD = Want to keep money in foreign currency and avoid exchange changes
If this first step goes wrong, later tax deduction and transfer issues will arise. So better if you choose correctly before booking the FD.
| Deposit | Currency | Tax in India | Repatriation | Best Use |
|---|---|---|---|---|
| NRE Term Deposit | INR | Tax-free | Fully allowed | Foreign earnings |
| NRO Term Deposit | INR | Taxable | Allowed after tax | Indian income |
| FCNR-B Deposit | Foreign currency | Tax-free | Fully allowed | Currency safety |
- NRE is most commonly opened because interest is tax-free in India.
- NRO, you cannot avoid tax, but you can use your indian money to earn some interest.
- FCNR-B is different — money stays in foreign currency, so if the rupee goes up or down, it does not affect you.
1. Federal Bank NRE Fixed Deposit Rates
One important rule first — NRE FD will earn interest only if you keep a minimum of 1 year. Before 1 year, the bank does not treat it like a normal earning FD. So this is not for very short parking. These rates are as per the bank revision active from 16-Feb-2026. So this is the currently active slab structure.
Federal Bank is running two rate systems:
- Regular FD (callable → you can break early; however, if you close before maturity, the bank applies a 1% penalty.)
- Deposit-Plus FD (non-callable → you cannot break, but rate slightly higher)
(A) Regular NRE Term Deposit (Callable – premature allowed)
| Period | Interest Rate | Practical branch tip |
|---|---|---|
| 1 year | 6.25% | Good only if you may need money soon |
| >1 yr to <15 months | 6.40% | Small jump, but lock flexibility remains |
| 15 months | 6.50% | Many staff suggest this — balance of rate & safety |
| >15 months to <36 months | 6.40% | Unlike expectation, longer doesn’t always mean higher |
| 36 months | 6.70% (peak) | Best normal FD return without taking restrictions |
| >36 months to 10 years | 6.40% | Long lock, but extra benefit not much |
Insight: Most NRIs think a 5-year FD gives the highest return. Here, actually 3-year (36 months) is giving the top rate. If you go longer, money blocks, but earnings don’t improve.
(B) Deposit-Plus NRE FD (Non-Callable – cannot break)
(Minimum ₹1 crore | No premature withdrawal | Min 12 months)
| Period | Interest Rate | When it actually makes sense |
|---|---|---|
| 1 year | 6.35% | Only if funds are confirmed unused |
| >1 yr to <15 months | 6.50% | Slightly better than normal FD |
| 15 months | 6.60% | Good for planned property purchase holding |
| >15 months to <36 months | 6.50% | Stable earning, but locked |
| 36 months | 6.85% (highest) | Best return Federal Bank currently giving in NRE |
| >36 months to 10 years | 6.50% | Long block — usually not advised |
Important difference: You get extra ~0.15%-0.20% because the bank knows you cannot withdraw early. If you break a normal FD, a penalty happens. But here, breaking is simply not allowed.
Who normally uses NRE FD
- Dubai salaried employees sending monthly savings
- Canada IT workers remitting yearly bonus
- Australian healthcare staff saving for a future return to India
They keep an emergency balance in NRE savings and park surplus in NRE FD.
2. Federal NRO Fixed Deposit Rates
These rates are for single NRO deposits below ₹3 crore for breakable FD rates with 1% penalty. Just a few days back, the Bank revision was effective as of 16 February 2026.
| Tenure | General (% p.a.) | Senior Citizen (% p.a.) | Quick branch note |
|---|---|---|---|
| 7–29 days | 3.00% | 3.50% | Only parking, not for earning |
| 30–45 days | 3.25% | 3.75% | Very short holding |
| 46–90 days | 4.25% | 4.75% | Slightly better but still low |
| 91–180 days | 4.50% | 5.00% | Useful if a property payment coming |
| 181 days | 6.00% | 6.50% | First proper earning slab |
| 271 days–<1 year | 5.90% | 6.40% | Many choose for temporary holding |
| 1 year | 6.25% | 6.75% | Stable option |
| 15 months | 6.50% | 7.00% | Balanced tenure |
| 36 months (peak) | 6.70% | 7.20% | Best normal return |
| >3 years to 10 years | 6.40% | 6.90% | Longer but benefit not higher |
Important things about NRO FD
- Interest is taxable in India
- Senior citizens get +0.50% extra on NRO deposits.
- The bank deducts TDS of about 31% if no tax documents are submitted
- Minimum opening amount: ₹1,000
- Interest can be sent abroad fully
- Principal can be repatriated up to USD 1 million per financial year (after tax rules)
Federal Bank also has a non-callable Deposit Plus option (higher rate around 7.1% type slabs), but you cannot break the FD early, and a minimum amount starts from 1 crore.
Tax part — this is where most NRIs get surprised
Normally, bank cuts high TDS on NRO FD. But taxes can be reduced. Submit to the bank:
- PAN card
- Tax Residency Certificate (TRC)
- Form 10F
After DTAA benefit (UAE, Canada, USA, and all), effective tax usually comes near 10%–15% instead of 30%+. Then, the after-tax interest you can transfer to an NRE account and remit outside India.
Practical understanding: Use NRO FD only for money earned inside India (rent, property sale proceeds, pension). For foreign salary savings, NRE FD is better — otherwise unnecessary tax deduction will happen
3. Federal Bank FCNR-B Deposit Rates (Foreign Currency FD)
This FD is not like NRE/NRO. Here, the bank keeps your money in the same foreign currency — no conversion into rupees. So, INR rising or falling does not affect your value.
Below are the practical rates most customers actually fall into — deposits below 5 lakh (in that currency). (Revision effective 18-Feb-2026)
FCNR-B Rates — USD, GBP, EUR (below 5 lakh equivalent)
| Tenure | USD | GBP | EURO | Real branch understanding |
|---|---|---|---|---|
| 1 to <2 years | 4.00% | 4.00% | 2.50% | Most people open this |
| 2 to <3 years | 3.90% | 4.20% | 2.25% | Slightly stable holding |
| 3 to <4 years | 3.50% | 4.00% | 2.00% | Only if long plan fixed |
| 4 to <5 years | 3.25% | 3.50% | 1.75% | Return reduces after 4 yrs |
| 5 years | 2.90% | 3.00% | 1.65% | Long lock, rarely taken |
Other currencies (common with Australia/Gulf NRIs)
| Tenure | AUD | CAD | SGD | HKD | JPY |
|---|---|---|---|---|---|
| 1–<2 yrs | 4.40% | 2.75% | 0.42% | 0.33% | 0.20% |
| 2–<3 yrs | 4.20% | 3.00% | 0.84% | 0.72% | 0.20% |
| 3–<4 yrs | 4.00% | 2.50% | 0.78% | 0.74% | 0.20% |
| 4–<5 yrs | 3.60% | 2.50% | 0.78% | 0.65% | 0.10% |
| 5 yrs | 3.60% | 2.25% | 0.80% | 0.57% | 0.10% |
What “5 lakh” means (important)
It is not ₹5 lakh. It means 5 lakh units of that currency:
- USD → $500,000
- GBP → £500,000
- EUR → €500,000
Above that amount, rates are handled by the bank’s treasury separately. But in reality, most NRI customers fall below this slab, so the table above is the practical one.
Why do people take FCNR instead of NRE?
NRE gives a higher number (6.5%, etc.), but it is in rupees. If the rupee weakens, when you convert back to dollars or pounds, your actual gain can reduce. FCNR removes that risk.
- Principal and interest in the same currency
- 100% tax-free in India
- Direct transfer abroad after maturity
- No exchange conversion loss
Gulf customers usually keep USD FCNR because AED and QAR are linked to USD, so the value remains steady.
Quick points
- Minimum period: 1 year (before that → no interest)
- Maximum: 5 years
- Loan available: around 75–90% of the FD value in INR
So if your future expense is outside India — education, settlement, property abroad — FCNR usually makes more practical sense.
Which FD Should You Actually Choose?
| Situation | Suitable Deposit |
|---|---|
| Sending savings from abroad | NRE FD |
| Receiving rent or pension in India | NRO FD |
| Staying abroad long-term | FCNR FD |
| Planning return to India in 2-3 years | NRE FD |
| Want protection from currency fluctuation | FCNR FD |
FAQs
How can I calculate Federal Bank NRI FD interest before opening?
No exact public calculator for NRI FD. Branch staff usually checks internal system. Example: $10,000 in 1-year USD FCNR at 4% earns roughly $400 yearly before maturity compounding.
What is the current Federal Bank NRE FD interest rate in 2026?
As per revision effective 16-Feb-2026, the highest normal NRE FD rate is 6.70% for 36 months tenure. Shorter periods give around 6.25%–6.50%, so 3-year option generally advised.
Do senior citizens get extra benefit in Federal Bank NRI deposits?
Only on NRO fixed deposits senior citizen gets extra 0.50% interest. NRE and FCNR accounts normally do not provide additional rate because income is already tax-free in India.
How much monthly income comes from ₹10 lakh Federal Bank FD?
At 6.70% yearly rate, ₹10 lakh NRE FD generates roughly ₹5,500–₹5,600 per month equivalent interest. Bank actually pays quarterly, but customers use monthly figure to understand income.
What are Federal Bank NRI savings account interest rates?
From 20-Feb-2026, balances up to ₹1 lakh earn 2.50% yearly. Higher balances gradually increase, and very large accounts can reach near 6.05%, though most normal NRI accounts stay lower slab.
Which is better — SBI NRE FD or Federal Bank NRE FD?
SBI offers around 6.60% in special schemes, but Federal Bank gives 6.70% regular 3-year tenure. Difference small, but Federal usually processes NRI services and remittance faster in practice.
How much interest will I get on ₹5 lakh Federal Bank FD?
At 6.70% rate, ₹5 lakh deposit earns about ₹33,500 yearly before maturity compounding. For NRE it is tax-free; for NRO bank deducts TDS first, so actual credit becomes lower.
Join 60,000 readers who get exclusive credit and banking deals, RBI updates, and investment insights from Easemoney.