Read below to find out the latest Federal Bank Fixed Deposit Rates
Latest Federal Bank FD Interest Rate for General Citizens
Federal Bank offers fixed deposit interest rates between 3% and 7.4% for general citizens (under 60 years of age) for fixed deposit tenures of between 7 days and five years or more. The highest interest rate of 7.4% is offered for fixed deposits of two tenures: 777 days and 50 months.
Latest interest rate on Federal Bank’s fixed-term deposit for senior citizens
The bank offers fixed deposit interest rates between 3.5% and 7.9% for senior citizens (aged 60 years and above) with fixed deposit terms ranging from 7 days to five years or more. Senior citizens get the highest interest rate of 7.9% on these two fixed deposit terms: 777 days and 50 months.
| Period | General public | Retired |
| 7 days to 29 days | 3.00% | 3.50% |
| 30 days to 45 days | 3.25% | 3.75% |
| 46 days to 60 days | 4.00% | 4.50% |
| 61 days to 119 days | 4.75% | 5.25% |
| 120 days to 180 days | 5.00% | 5.50% |
| 181 days | 6.50% | 7.00% |
| 182 days to less than 1 year | 6.25% | 6.75% |
| 1 year to 399 days | 6.80% | 7.30% |
| 400 days | 7.35% | 7.85% |
| 401 days to 776 days | 7.05% | 7.55% |
| 777 days | 7.40% | 7.90% |
| 778 days to less than 3 years | 7.05% | 7.55% |
| 3 years to less than 50 months | 7.00% | 7.50% |
| 50 months | 7.40% | 7.90% |
| More than 50 months to less than 5 years | 7.00% | 7.50% |
| 5 years and older | 6.60% | 7.25 |
Source: Federal Bank website as of September 17, 2024
If you withdraw your fixed deposit within 15 days, there will be no penalty for early withdrawal. However, if you withdraw your deposit after 15 days, you will have to pay a 1% penalty for early withdrawal of your deposit, according to Federal Bank’s website.
According to the bank’s website, the penalties for premature withdrawal of rupee term deposits opened/renewed with effect from October 22, 2022 are as follows:
|
Deposit period |
Criminal interest |
|
|
Single deposit less than 3 million rupees |
One-time deposit of Rs 3 million or more |
|
|
Up to 15 days inclusive |
0% |
1% |
|
More than 15 days |
1% |
1% |
Source: Federal Bank website
In the case of smart deposits, if you withdraw your deposit early within 90 days of investment, you will not have to pay any penalty interest. If the smart deposit is withdrawn early after 90 days, the penalty interest will be 1%, according to the bank’s website.
These early penalty rates will be applicable on deposits up to Rs 3 crore, the bank further mentioned.
The Federal Bank has also specified the penalty structure for premature withdrawal of funds for smart deposit systems. They are as follows:
| Deposit period | Criminal interest |
| Up to 90 days inclusive | 0% |
| More than 90 days | 1% |
Source: Federal Bank website
Is fixed deposit interest taxable in India?
According to YES Bank’s website, as of September 17, 2024, “Interest on fixed deposits is considered ‘income from other sources’ and is therefore fully taxable. Interest earnings on fixed deposits are included in your gross annual income and the tax liability is estimated as per applicable tax laws.”
When are you required to pay taxes on fixed deposits?
According to YES Bank’s website, “If the interest on the FD is more than Rs 40,000, PAN users will have to pay 10% as tax and non-PAN users will have to pay 20% tax on the interest earned. This interest will be deducted as TDS (tax deducted at source) at the time of annual interest credit. The upper limit of Rs 40,000 is not applicable on total earnings but on individual FDs.”
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