Federal Bank NRI FD interest rates currently range from 3.00% to 6.75% p.a. for deposits below ₹3 Crores.
NRE Fixed Deposits offer tax-free growth in India, while NRO Fixed Deposits are mainly used for rental income, pension, dividends, and other earnings generated within India.
The highest returns are currently available on the 15 Months (6.70%) and 36 Months (6.75%) tenures. Below is the latest Federal Bank NRE & NRO FD Callable Quarterly Interest table.
| FD Tenure | NRE FD | NRO FD |
|---|---|---|
| 7 Days – 29 Days | Not Available | 3.00% |
| 30 Days – 45 Days | Not Available | 3.25% |
| 46 Days – 90 Days | Not Available | 4.25% |
| 91 Days – 180 Days | Not Available | 4.50% |
| 181 Days – 270 Days | Not Available | 5.50% |
| 271 Days – Less than 1 Year | Not Available | 6.00% |
| 1 Year | 6.25% | 6.25% |
| Above 1 Year – Less than 15 Months | 6.40% | 6.40% |
| 15 Months | 6.70% | 6.70% |
| Above 15 Months – Less than 3 Years | 6.40% | 6.40% |
| 36 Months (3 Years) | 6.75% | 6.75% |
| Above 3 Years – 10 Years | 6.40% | 6.40% |
📌 Important NRI FD Rules
- NRE deposits start from a minimum tenure of 1 year
- If an NRE FD is closed before completing 1 year, no interest is paid
- NRE deposits offer tax-free interest in India and allow repatriation of funds
- NRO deposits are mainly used for managing income earned within India
- 15 Months and 36 Months currently offer the best FD rates
💡 NRI Tip: The 15-Month FD currently gives 6.70% with a shorter lock-in than a 3-year deposit, making it a popular choice among many NRI investors.
📌 Quick Insight: NRE and NRO FD rates are currently identical on most major tenures. The main difference is taxation and fund repatriation rules.
⚠ Seniors Privilege: The additional 0.50% senior citizen interest boost is strictly barred for NRE portfolios but remains active for domestic-backed resident NRO holdings.
Read Below: FCNR Deposits • Types of Federal Bank NRI FDs • How To Open an NRI FD • Rules, Charges & Fees
1. 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.
2. Important Federal Bank NRI FD Rules, Charges & Tax Points
Before opening an NRE or NRO Fixed Deposit, keep these important rules in mind:
- Premature Closure Penalty: If you break the FD before maturity, the bank may reduce the applicable interest rate by 1.00% as per its penalty rules.
- NRE FD Rule: If an NRE FD is closed before completing 1 year, no interest is paid on the deposit.
- NRO FD Tax Rule: TDS is applicable on NRO FD interest. Unlike regular resident FDs, tax deduction can start from the first rupee of interest earned as per applicable rules.
- KYC Requirement: Your passport, visa, overseas address, and other KYC documents should remain updated with the bank.
- Auto-Renewal Check: If an FD renews automatically, it will be renewed at the interest rate available on the renewal date, which may be higher or lower than your old FD rate.
- Loan Against FD: Instead of closing your deposit account, you may be able to get a loan or overdraft of up to 90% of the FD value, subject to bank policies.
- Deposit Insurance: Eligible bank deposits are covered under DICGC insurance up to ₹5 lakh per depositor.
📌 Example: Suppose an NRI opens an NRE FD for ₹10 lakh and closes it after 8 months due to an emergency. Since the deposit did not complete the mandatory 1-year period, the bank will not pay any interest on that FD.
3. Tax Rules for NRE and NRO Fixed Deposits
The tax treatment of an NRI FD depends on whether you choose an NRE FD or an NRO FD.
1. NRE FD: Tax-Free Interest in India
If you keep your money in an NRE Fixed Deposit, the interest earned is generally tax-free in India. Many NRIs prefer NRE FDs because they offer both fixed returns and tax benefits.
2. NRO FD: TDS Applies on Interest
Interest earned on an NRO Fixed Deposit is taxable in India. Banks usually deduct TDS at 30.90% on the interest earned before crediting the amount to your account.
3. DTAA Benefit Can Reduce Tax
If India has a Double Taxation Avoidance Agreement (DTAA) with the country where you currently live, you may be able to pay a lower tax rate.
To claim this benefit, you generally need to submit:
- Tax Residency Certificate (TRC)
- Self-declaration form
- Other documents requested by the bank
Depending on the country, the effective tax rate can come down from 30.90% to around 10%–15%.
📌 Example: Suppose an NRO FD earns ₹1,00,000 as interest during the year. Without DTAA documents, the bank may deduct around ₹30,900 as TDS. If DTAA benefits are available and approved, the tax deduction could be much lower, helping you keep more of your interest income.
4. How to Open an NRI Fixed Deposit Online
If you already have an NRE or NRO account with Federal Bank, you can open an FD online from anywhere without visiting a branch.
- Open the FedMobile App or log in to Federal Bank NetBanking.
- Enter your User ID, password, or other login details.
- Go to the Deposits section.
- Click on Open Fixed Deposit.
- Select the FD type:
- NRE Fixed Deposit
- NRO Fixed Deposit
- Choose the account from which the money will be deducted.
- Enter the amount you want to invest. The minimum deposit starts from ₹1,000.
- Select the FD tenure. Many NRI investors look at the 15 Months and 36 Months options as they currently offer some of the better rates.
- Choose how you want to receive the interest:
- Reinvestment (Cumulative)
- Monthly Interest Payout
- Check the details, add a nominee if required, and confirm the request using your transaction PIN or OTP.
If you don’t need regular monthly income, a Reinvestment FD is usually preferred because the interest stays in the FD and continues earning more interest until maturity.
Federal Bank NRI FD Rates vs Other Popular Banks
If you are comparing NRI FD rates, here’s how Federal Bank stacks up against some other major banks.
| Bank | Peak NRE Rate | Peak NRO Rate | Best Tenure |
|---|---|---|---|
| Federal Bank | 6.75% p.a. | 6.75% p.a. | 36 Months |
| HDFC Bank | 7.00% p.a. | 7.00% p.a. | 1 Year to Less Than 15 Months |
| State Bank of India (SBI) | 6.75% p.a. | 6.75% p.a. | 2 Years to Less Than 3 Years |
| ICICI Bank | 6.50% p.a. | 6.50% p.a. | 3 Years to 5 Years |
📌 Worth Comparing: A higher interest rate is important, but it should not be the only factor. Many NRIs also compare tax benefits, premature withdrawal rules, online banking facilities, and how easily funds can be repatriated before choosing an NRE or NRO Fixed Deposit.
Federal Bank FCNR (Foreign Currency Non-Resident) Deposits
If you don’t want to take the risk of currency fluctuations between your local currency and the Indian Rupee, an FCNR Deposit can be a useful option.
With an FCNR FD, you deposit money in a foreign currency and receive the maturity amount in the same currency.
Foreign Currencies Available
Federal Bank offers FCNR deposits in:
- US Dollar (USD)
- British Pound (GBP)
- Euro (EUR)
- Canadian Dollar (CAD)
- Australian Dollar (AUD)
- Singapore Dollar (SGD)
Why Some NRIs Prefer FCNR Deposits
- No Indian Rupee conversion risk
- Deposit and maturity happen in the same foreign currency
- Suitable for NRIs planning to use the money abroad later
- Interest rates are reviewed periodically based on international market rates
Premature Closure Rules for NRI FDs
Before opening an NRE or NRO FD, it is important to understand the early withdrawal rules.
- NRE FD Closed Before 1 Year: No interest will be paid. Only the original deposit amount is returned.
- NRE/NRO FD Closed After 1 Year: The bank may apply a 1% penalty on the applicable interest rate for the period the FD actually remained with the bank.
📌 Example: Suppose an NRI invests ₹10 lakh in an NRE FD for 3 years but closes it after 8 months. Since the deposit did not complete the mandatory 1-year period, no interest will be paid and only the original ₹10 lakh will be returned.
Frequently Asked Questions
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.
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