Federal Bank pays interest rates to the tune of 3.5-6.7 per cent to customers on fixed deposits up to Rs 2 crore. These fixed deposits, also known as retail term deposits, are available in 10 maturity options at the private sector bank starting from seven days. For example, on fixed deposits up to Rs 2 crore for a maturity (lock-in) period of one year, Federal Bank pays interest at the rate of 6.5 per cent to the general public, according to its website - federalbank.co.in. (Also Read: Compare Bank FD Rates Paid By Peers Here)
To senior citizen customers, the bank offers a 0.50 per cent additional return on deposits of all maturity options up to Rs 2 crore, according to the Federal Bank website.
Federal Bank pays the following interest rates on fixed deposits up to Rs 2 crore:
Federal Bank Fixed Deposit Rates
| Maturity Period | Interest Rate (With Effect From October 10) |
|---|---|
| Seven to 14 days | 3.5% |
| 15 to 29 days | 4.5% |
| 30 to 60 days | 5% |
| 61 to 90 days | 5.5% |
| 91 to 180 days | 5.75% |
| 181 to 270 days | 6.25% |
| 271 days to one year | 6.5% |
| Above one year to less than 20 months | 6.6% |
| 20 months | 6.7% |
| Above 20 months | 6.6% |
| (Source: federalbank.co.in) | |
(Federal Bank FD Interest Rate: On domestic retail fixed deposits of 20 months, Federal Bank pays a 6.7 per cent return to customers, according to its website)
Investment in fixed deposits with a maturity period of five years offers income tax benefit up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act. Interest income, however, is subject to income tax.
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