Federal Bank RD Interest Rates

What is a Federal Bank Recurring Deposit

A Federal Bank Recurring Deposit helps customers build a corpus through monthly payments. A monthly deposit starts at ₹50 only, and payments may be made in multiples of ₹100. There is no upper limit on monthly deposits, so any amount above ₹50 may be added each month as per your financial plan.

Interest is calculated on each instalment from the date of deposit until maturity, meaning earlier deposits earn more interest than later ones. If all instalments are paid regularly, interest is compounded as per bank rules. For pending instalments at maturity, interest is calculated on the available balance accordingly. You can also use the RD calculator to estimate returns accurately.

Federal Bank RD Interest Rates

The following table provides the updated Federal Bank recurring deposit interest rates for deposits below ₹3 Crores, applicable to general public and senior citizens.

*Federal Bank RD Interest Rates are as per the official website w.e.f. March 12th 2026.

Types of Federal Bank Recurring Deposit

Federal Bank provides recurring deposit plans that support customers to save regularly, achieve financial goals, and receive assured returns, covering both short-term and long-term savings needs.

Federal Savings Fund

The Federal Savings Fund is the standard recurring deposit scheme, allowing customers to save a fixed amount every month. The minimum tenure is 6 months, extending up to 10 years. Unique features include flexible monthly deposits, standing instructions for auto-debit, and the ability to take loans against the RD balance.

Interest is calculated in accordance with the bank's recurring deposit norms, while senior citizens receive better returns. It suits regular saving habits with assured returns.

Millionaire Federal Savings Fund

This is a goal-oriented RD that assists customers in building a corpus systematically in order to achieve targets like ₹10 lakh. The monthly instalment will be calculated according to the target amount and selected tenure. Its main characteristics are customised maturity objectives, the ability to track target advancement online, and customised deposit overlay.

It supports savers planning medium-term wealth steadily, with interest being compounded at intervals. Nomination and senior citizen benefits are also included.

Crorepati Federal Savings Fund

Designed for long-term high-value savings, this RD helps customers achieve a corpus of ₹1 crore through regular monthly contributions. Key features cover goal-based instalment planning, automatic interest compounding, and an option to change monthly contributions when required.

This option fits disciplined investors focused on long-term wealth creation. Nomination facilities and senior citizen benefits are included, ensuring consistent accumulation of funds for future expenses or investments.

Multi-Millionaire Federal Savings Fund

The Multi Millionaire RD is intended for ambitious savers aiming to build a multi-crore corpus over an extended period. Key features include tailored monthly instalment planning based on the target corpus, freedom to raise contributions, and online tracking of growth.

Interest is compounded periodically, ensuring systematic accumulation. It is ideal for long-term goals like family wealth creation or retirement planning, with nomination and senior citizen benefits included.

Key Features of Federal Bank Recurring Deposit

A Federal Bank Recurring Deposit (RD) is meant to support regular monthly savings and offer fixed returns. Main features are:

• Minimum and Maximum Monthly Deposit: The minimum deposit amount for Federal Savings Deposit is just Rs. 50, with additional contributions in multiples of ₹10. There is no set limit, so savings can match your own convenience level.
• Standing Instruction Facility: The RD allows automatic transfer of monthly instalments from your Federal Bank savings account, ensuring timely deposits without manual intervention.
• Interest Payment: Interest cannot be withdrawn before maturity and is released at maturity. It is compounded every quarter, helping savings increase steadily.
• Loan Against RD: Customers can take a Federal Bank Loan Against RD without closing the deposit, on the terms and conditions of the bank.
• RD Premature Withdrawal: Federal Bank RD premature withdrawal is permitted in situations where funds are required before maturity. The amount withdrawn is subject to interest, which is charged at a low rate, according to the bank's regulations.
• Tenure: The deposits have a minimum tenure of 6 months to a maximum of 10 years, which helps in planning how to save effectively.
• TDS on Interest: Interest collected on RDs is subject to tax as per the Income Tax Act. In case the overall interest in a financial year is more than ₹50,000 (₹1,00,000 for senior citizens), TDS of 10% will be subtracted. To avoid TDS, you can file Form 15G/15H provided that you have a total income less than the taxable amount.
• Account Flexibility: A Federal Bank savings account is not required for this purpose. If your account is with another bank, you may use NACH e-Mandate to approve monthly debits for your RD.

How to Open a Federal Bank Recurring Deposit

A Federal Bank Recurring Deposit (RD) can be opened online or through a visit at a bank branch. The process is easy, needing basic account details and minimal documentation.

Online Method

You can open a Federal Bank RD through internet banking or mobile banking without visiting the branch. The key steps are:

• Log in to Internet/Mobile Banking: Use your Federal Bank internet banking credentials or the official FedMobile app to sign in.
• Select Recurring Deposit Option: Go to the deposits section and choose “Open Recurring Deposit.”
• Enter Deposit Details: Input the monthly instalment amount, tenure, and any other required instructions.
• Choose Linked Account: Select the Federal Bank savings or current account from which the monthly instalments will be debited.
• Review and Submit: Verify details, agree to terms, and submit the request.
• Confirmation: After submission, your RD account is opened and confirmation details are provided.

Offline Method

You may also open an RD by visiting a Federal Bank branch:

• Visit the Branch: Go to the nearest Federal Bank branch.
• Request RD Form: Ask for the recurring deposit application form.
• Fill Application: Submit personal information, monthly deposit amount, tenure, and linked account details.
• Submit Documents: Submit identity proof and account details as needed.
• Deposit Initial Instalment: Pay the first monthly instalment.
• Account Activation: The bank opens the RD account and issues confirmation details.

Eligibility Criteria for Federal Bank Recurring Deposit

Federal Bank Recurring Deposit (RD) offers an option to save funds on a regular basis to different customers. The eligibility criteria include:

• Individuals: Any adult can open an RD account in their name. This enables savings with guaranteed returns for the period selected.
• Joint Account Holders: A joint RD account can be opened by two or more applicants. The deposits are shared equally, and the interest benefits are also shared equally by the account holders.
• Minors: RD accounts that belong to minors should be opened and operated by a guardian. Accounts are activated with full and valid KYC documents of the guardian.
• Hindu Undivided Family (HUF): HUFs can open RD accounts in the name of the family. This allows joint savings for family needs and financial planning.
• Business Entities and Organisations: Sole proprietorships, clubs, associations, firms, joint stock companies, and other RBI-approved entities may open RDs to handle surplus funds effectively.

Key Takeaways

Federal Bank Recurring Deposit (RD) offers flexible savings with a minimum monthly deposit of ₹50 and no maximum limit, suitable for individuals, minors, HUFs, and entities. The period runs from 6 months to 10 years, and interest is added every quarter. RD interest rates vary between 4.50% to 6.75% for the general citizens, and 5% to 7.25% for senior citizens.