What is a Federal Bank NRE Fixed Deposit?
The Federal Bank NRE FD is a financial product under which Non-Resident Indians invest money for a predetermined time and earn interest on it. The account offers a higher interest rate than that of a savings account. The interest earned on the deposit is exempt from tax, and the FD funds are fully repatriable, ensuring that the amount in an NRE FD can be transferred back to the investor’s home country account without any hassle. Federal Bank NRE FD ensures easy investment by NRIs, resulting in secured financial growth.
Rate of Interest on Federal Bank Non-Resident External (NRE) FD Account Deposits
The interest rates received on Federal Bank NRE fixed deposit accounts amounting to below ₹3 crore are as follows:
| Period |
Rate of interest p.a |
Annualized Yield |
| 1 Year |
6.85% |
7.03% |
| 444 days |
7.30% |
7.56% |
| 2 years |
7.00% |
7.44% |
| 3 years |
7.00% |
7.71% |
| 4 years |
7.00% |
7.99% |
| 5 years |
7.00% |
8.29% |
| 6 years |
6.50% |
7.87% |
| 7 years |
6.50% |
8.14% |
| 8 years |
6.50% |
8.43% |
| 9 years |
6.50% |
8.73% |
| 10 years |
6.50% |
9.05% |
Note: *Interest rates effective from April 17, 2025. Federal Bank NRE FD rates are subject to change without prior notice.
The Fixed Deposit interest rates received on Federal Bank NRE fixed deposit accounts amounting to more than ₹3 crore to more than 150 crore are as follows:
| Period |
Rs 3.00 Cr to Rs 4.75 Cr |
Above Rs 4.75 Cr to Rs 5.00 Cr |
Above Rs 5.00 Cr to Rs 24.75 Cr |
Above Rs 24.75 Cr to Rs 25.00 Cr |
Above Rs 25.00 Cr to Rs 49.75 Cr |
Above Rs 49.75 Cr to Rs 50.00 Cr |
Above Rs 50.00 Cr to Above Rs 150 Cr |
| 1 Year |
7.15% |
6.25% |
7.15% |
6.25% |
7.15% |
6.25% |
7.15% |
| 1 year 1 day to 15 months |
7.15% |
6.10% |
7.15% |
6.10% |
7.15% |
6.10% |
7.15% |
| Above 15 months to 18 months |
6.75% |
6.00% |
6.75% |
6.00% |
6.75% |
6.00% |
6.75% |
| Above 18 months to 2 years |
6.75% |
5.75% |
6.75% |
5.75% |
6.75% |
5.75% |
6.75% |
| Above 2 years to 3 years |
6.75% |
5.50% |
6.75% |
5.50% |
6.75% |
5.50% |
6.75% |
| Above 3 years to 5 years |
6.75% |
5.25% |
6.75% |
5.25% |
6.75% |
5.25% |
6.75% |
| Above 5 years |
6.75% |
5.00% |
6.75% |
5.00% |
6.75% |
5.00% |
6.75% |
Note: *Interest rates effective from April 28, 2025. Federal Bank NRE FD rates are subject to change without prior notice.
Why Choose a Federal Bank NRE FD Account?
The Federal Bank NRE FD account offers its customers various benefits, including:
-
Federal Bank NRE FDs provide interest rates that are more attractive than those of a regular savings account.
-
Withdrawal of the deposited amount before maturity is allowed.
-
Borrowers can get an advance of up to 90% against their deposit.
-
Loan repayments can be made through foreign remittances, transfers from the borrower's NRE account, or by closing the deposit.
-
To meet diverse individual requirements, the bank offers flexible deposit periods spanning from 1 year to 10 years.
-
The interest earned on these deposits is exempt from taxation.
What Are the Eligibility Criteria for a Federal Bank NRE FD Account?
In order to invest in the Federal Bank NRE FD account, the following conditions must be fulfilled:
-
The customer must fall under one of the following categories: NRI, PIO, OCI, Indian seafarer, Indian government employees with a diplomat’s passport, or student studying abroad.
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Must have valid ID proof, including an Indian passport and a PIO card.
-
Required to show authentic overseas address proof.
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Must present valid proof, including a student visa or employment visa.
Documents Required to Open Federal NRE FD Account
The general documents required for opening a Federal Bank NRE FD account are:
-
Documents to be submitted by NRIs
At the time of submitting an application to open an NRE FD account at Federal Bank, the following duly signed documents are to be submitted:
-
Documents to be submitted by OCIs / PIOs
While submitting an application to open an NRE FD account at Federal Bank, the following duly signed documents are required:
-
Documents to be submitted by Students
Students, while submitting an application to open an NRE FD account at Federal Bank, have to attach the following duly signed documents:
-
Documents for Seafarers
Seafarers, while submitting an application to open an NRE FD account at Federal Bank, should have the following duly signed documents:
Conclusion
Federal Bank NRE FD rates are high and ahead of its competitors. One of the most convenient ways for NRIs to judiciously invest and grow their earnings from abroad is by investing in a Federal Bank NRE FD account. With complete information on NRE FD interest rates, you can invest and grow your savings rapidly.
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