Federal Bank RD Interest Rates

One of the popular investment options to save money is Recurring deposit (RD). Federal Bank RD is designed for saving money monthly with a stipulated timeline and earning extra interest on your investment. This can help individuals achieve future goals such as children's education or marriage. Depositors have the flexibility to choose the period and the installment amount. The bank also offers a standing instruction facility and the option to avail of a loan against the recurring deposit account.

The Federal Bank RD Interest Rates vary from 5.75% to 7.40% per annum, with senior citizens receiving an additional interest rate of 0.50%.

Federal Bank RD Interest Rates 2024

You can now align your financial goals and objectives with the investment and reinvestment timelines, to help maximize return on your investment. The table below shows the Interest rates for Resident Term Deposits for less than ₹2 crores effective from 17-04-2024 (Rates in % p.a)

Deposit Tenure Interest Rates for
General Public (% p.a.)
Interest Rates for
Senior Citizens (% p.a.)
181 days to 270 days 5.75% 6.25%
271 days to less than 1 year 6.00% 6.50%
1 year to less than 13 months 6.80% 7.30%
13 months to 399 days 7.20% 7.70%
400 days 7.40% 7.90%

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Federal Bank RD Interest Rates For NRE

The table below shows the Interest rates for NRE Term Deposits for less than ₹2 crores effective from 17-04-2024 (Rates in % p.a)

Deposit Tenure Interest Rate (% p.a.)
1 year to less than 13 months 6.80%
13 months to 399 days 7.20%
400 days 7.40%
401 days to 21 months 7.20%
Above 21 months to less than 3 years 7.05%

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Federal Bank RD Calculator

An online RD calculator is useful for estimating the growth of your savings over time when contributing a fixed amount at regular intervals.

Invested Amount :  ₹1,000
Total Interest :  ₹532
Maturity Amount :  ₹12,532

Here are the steps to use the RD (Recurring Deposit) calculator:

  • Step 1: Enter the deposit amount.
  • Step 2: Input the RD interest rate.
  • Step 3: Select the investment tenure.
  • Step 4: The invested amount, total interest, and maturity amount will be displayed.

Note: The interest rates and other details may change over time, so it's always recommended to cross-check with the bank's latest information before making any financial decisions.

Features of Federal Bank RD Interest Rate

Federal Bank's Recurring Deposit (RD) account is a great way to grow your savings gradually. With a minimum deposit of just ₹50 and the flexibility to invest regularly helps you achieve your financial goals. This table summarizes the key features of the Federal Bank RD account, including interest rates, deposit terms, and benefits for senior citizens.

Feature Description
Minimum Deposit ₹50/-
Additional Contributions Multiples of ₹10/-
Interest Calculation Quarterly compounding
Interest Withdrawal Not allowed before maturity
Deposit Period Min 6 months, Max 10 years

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RD Interest Rates of Top Banks

Here is a comprehensive list of RD interest rates from top banks:

Bank Recurring Deposit RD Interest Rates (p.a)
General Public
RD Interest Rates (p.a)
Senior Citizens
Federal Bank RD 5.75% to 7.50% 6.25% to 8.00%
State Bank of India RD 6.50% to 7.00% 7.25% to 7.50%
ICICI Bank RD 4.75% to 7.20% 5.25% to 7.75%
HDFC Bank RD 4.50% to 7.25% 5.00% to 7.75%
Kotak Mahindra Bank RD 6.00% to 7.40% 6.50% to 7.90%

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Note: The interest rates are subject to change. Do visit the official website for updated rates.

Besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.

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Federal Bank RD Interest Calculation

You can use an online RD calculator to calculate the interest amount for your Recurring Deposit (RD) or compute it manually. The mathematical formula for this calculation is provided below.

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )

M = Maturity Value
R = Monthly Installment
n = Number of quarters
I = Rate of interest

Let’s assume a monthly recurring deposit of ₹500 for 5 years at 7.4% interest p.a. compounded quarterly.

Here's the calculation for the interest you will earn at maturity:


  • Monthly deposit (R) = ₹500
  • Deposit period (n) = 5 years * 4 quarters/year = 20 quarters
  • Interest rate (i) = 7.4% p.a. = 7.4 / 100 = 0.074 (converted to decimal)

Using the compound interest formula:
M = R [(1 + i)^n - 1] / (1 - (1 + i)^(-1/3))

Calculating the maturity value (M):
M = 500 * [(1 + 0.074)^20 - 1] / (1 - (1 + 0.074)^(-1/3)) M ≈ ₹13,635.76

Total deposit:
Total deposit = Monthly deposit * Number of deposits Total deposit = ₹500/month * 20 quarters = ₹10,000

Interest earned:
Interest = Maturity value - Total deposit Interest = ₹13,635.76 - ₹10,000 Interest ≈ ₹3,635.76

Therefore, with a 7.4% interest rate compounded quarterly, you would earn approximately ₹3,635.76 in interest over the 5 years on a recurring deposit of ₹500.

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Types of Federal Bank RD Schemes

Federal Bank offers a range of Recurring Deposit (RD) schemes to meet various financial needs. The following Suite of Federal Bank RD Schemes should help you assess your choice with interest rate and lock-in period features and choose the one that best fits your savings goals in real time.

Here are the different types of Federal Bank RD Schemes:

1. Short-Term Recurring Deposits:

  • Tenure: 181 days to less than one year
  • Interest Rates: General Public: 4.00% p.a. to 4.40% p.a. For Senior Citizens: 4.50% p.a. to 4.90% p.a.

2. Medium-Term Recurring Deposits:

  • Tenure: 12 to 36 months
  • Interest Rates: General Public: 5.10% p.a. to 5.35% p.a. For Senior Citizens (over 60 years): 5.60% p.a. to 5.85% p.a.

3. Long-Term Recurring Deposits:

  • Tenure: More than 24 months
  • Interest Rates: General Public: 5.35% p.a. For Senior Citizens: 5.85% p.a. to 6.00% p.a.

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Steps to Open Federal Bank RD Account Using FedMobile App

You can either go to a Federal Bank branch or utilize their digital platforms such as the FedMobile app to open a Recurring Deposit account.

Here are the steps to open Federal bank accounts using the FedMobile app online.

Step 1: Log in to the FedMobile app and tap on 'Investments' at the bottom of the Home screen

Step 2: Go to 'Bank Deposits' and select 'Recurring Deposit' and proceed

Step 3: Enter the deposit amount and select a scheme and period

Step 4: Choose the date to debit the amount and select the Debit Account

Step 5: Confirm the details and enter your MPIN to confirm the deposit

Note: Additionally, you can also open a Recurring Deposit account through FEDDY, the bank's virtual assistant, which is accessible on Alexa, Google Assistant, the official website, and WhatsApp.

Eligibility Criteria to Open Federal Bank RD Account

Federal Bank has established certain criteria for individuals and entities eligible to open a recurring deposit account. They include:

  • Single individuals
  • Individuals in joint ownership with others
  • Minors with a guardian
  • Hindu Undivided Families (HUF)
  • Sole proprietorships
  • Clubs/Associations
  • Partnerships
  • Corporations
  • Any other entity permitted by RBI

Documents Required For Federal Bank RD Account

To open a recurring deposit account, the following documents must be submitted:

  • A completed application form
  • Proof of address
  • PAN card
  • Identification proof
  • Photographs
  • KYC documents

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Benefits of Federal Bank RD Account

Investing in Recurring Deposits (RDs) can be a valuable addition to one's financial portfolio. Federal Bank RD offers several advantages that make it an attractive investment option. Here are the benefits:

  • Assured Returns: One of the main advantages of investing in Recurring Deposits is that they provide guaranteed returns. Unlike other investment options, RDs offer fixed interest rates, ensuring a predictable return at the end of the term.
  • Flexible Investment Periods: Federal Bank provides flexible tenure options, ranging from as short as 6 months to as long as 10 years. This allows individuals to select a tenure that aligns with their financial objectives and requirements.
  • No Exposure to Market Risks: While investing in the stock market or mutual funds carries market-related risks, Recurring Deposits are not affected by market conditions. Investors will receive a fixed return regardless of market fluctuations.
  • Consistent Savings: Recurring Deposits promote the practice of regular savings. By investing a set amount at regular intervals, individuals can accumulate savings over time and achieve their financial targets.

Federal Bank RD Premature Withdrawal

Federal Bank allows its RD customers to withdraw their deposits prematurely, though certain conditions and charges may apply.

Table showing revised penalty for premature withdrawal:

Period of Deposit* Penal Interest for deposit of less than ₹2Crores
Up to and including 15 days 0%
Above 15 days 1%
*Period for which the deposit is maintained with the Bank, irrespective of the contracted tenor

Table showing penalty for premature withdrawal penalty for smart deposit scheme:

Period of Deposit Penal Interest
Up to and including 90 days 0%
Above 90 days 1%

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Frequently Asked Questions

Federal Bank's current RD interest rates vary based on the tenure of the deposit, typically ranging from 5.75% to 6.75% per annum.

Federal Bank reviews and updates its RD interest rates periodically, usually in response to changes in market conditions and the Reserve Bank of India's monetary policies.

Yes, Federal Bank's RD interest rates are tiered, with longer-term deposits generally earning higher interest rates than shorter-term RDs.

Yes, Federal Bank provides an online RD calculator on its website that allows customers to estimate the maturity amount based on the deposit amount, tenure, and interest rate.

Yes, Federal Bank offers a higher interest rate, typically 0.50% more, on RDs for senior citizens aged 60 and above.

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