Federal Bank has recently revised its fixed deposit (FD) interest rates. These interest rates are applicable for fixed deposits below Rs 3 crore. The new FD rates have been effective from September 16, 2024
Read below to find out the latest Federal Bank FD 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 (age below 60 years) for FD tenures ranging from 7 days to five years and above. The highest interest rate of 7.4% is offered on FDs of two tenures: 777 days and 50 months.
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Latest Federal Bank FD interest rate for senior citizens
The bank offers fixed deposit interest rates between 3.5% and 7.9% for senior citizens (aged 60 and above) for FD tenures ranging from 7 days to five years and above. Senior citizens get the highest interest rate of 7.9% on these two tenures of FDs: 777 days and 50 months.
| Period | General Public | Senior Citizen |
| 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% |
| Above 50 months to less than 5 years | 7.00% | 7.50% |
| 5 years and above | 6.60% | 7.25 |
Source: Federal Bank website as of September 17, 2024
If you withdraw your FD within 15 days, there will be no penalty for premature withdrawal. However, if you withdraw your deposit after 15 days, you have to pay a penalty of 1% for prematurely withdrawing your deposit, according to the Federal Bank website.
According to the bank’s website, the penalty for premature withdrawal of rupee term deposits opened/renewed with effect from October 22, 2022, are as follows:
| Period of deposit | Penal interest | |
| Single deposit less than Rs 3 crore | Single deposit of Rs 3 crore and above | |
| Up to and including 15 days | 0% | 1% |
| Above 15 days | 1% | 1% |
Source: Federal Bank website
For smart deposits, if you prematurely withdraw your deposit within 90 days of investment, you don’t have to pay any penal interest. If the smart deposit is prematurely withdrawn after 90 days, then the penal interest will be 1%, according to the bank website.
These premature penalty rates will apply for deposits of up to Rs 3 crore, the bank further mentions.
Federal Bank has also specified the premature withdrawal penalty structure for smart deposit schemes. They are as follows:
| Period of deposit | Penal interest |
| Up to and including 90 days | 0% |
| Above 90 days | 1% |
Source: Federal Bank website
Is fixed deposit interest taxable in India?
According to YES Bank website as of September 17, 2024, “Interest on FDs is treated as ‘income from other sources’ and hence, is fully taxable. The FD interest earnings are included in your gross annual income, and the tax liability is estimated, following the prevalent tax laws.”
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When are you liable to pay tax on FDs?
According to YES Bank website, “If the interest on FD is more than Rs 40,000, then PAN users would be liable to pay 10% as tax and non-PAN users would pay 20% tax on interest earned. This interest would be deducted as TDS (tax deducted at source) at the time of credit of annual interest. The upper limit of Rs 40,000 is not applicable on aggregate earnings but is for individual FDs.”
