When it comes to secure and stable NRI investment options, NRO (Non-Resident Ordinary) Fixed Deposits have long been favored by investors around the world. Among the various banks offering NRO FDs, the Federal Bank stands out as a prominent player, providing competitive interest rates and a range of benefits. In this blog, we will explore the Federal Bank NRO FD rates and understand why they can be an attractive investment option.
Federal Bank NRO FD Rates: Deposits Less than Rs. 2 Crore
Here are the Federal Bank latest NRO Fixed Deposit rates. These rates are effective from 17 May 2023.
| Tenure | Deposit Less than Rs. 2 Crore |
|---|---|
| 7 days- 29 days | 3.00% |
| 30 days- 45 days | 3.25% |
| 46 days- 60 days | 4.00% |
| 61 days- 90 days | 4.75% |
| 91 days- 119 days | 4.75% |
| 120 days- 180 days | 5.00% |
| 181 days- 270 days | 5.75% |
| 271 days to less than 1 year | 6.00% |
| 1 year to less than 15 months | 6.80% |
| 15 months to 2 years | 7.25% |
| Above 2 years to less than 3 years | 6.75% |
| 3 years to less than 5 years | 6.60% |
| 5 years and above | 6.60% |
Note- These rates are subject to change. It is essential to check with the official website of Federal Bank for the most up-to-date information on NRO FD rates.
Federal Bank NRO Rates: Deposits Above Rs. 2 Crore
Given below are the Federal Bank NRO FD rates for deposits above Rs. 2 Crore. These rates are effective from 27 July 2023:
| Tenure | Rs. 2 Cr to Rs. 2.25 Cr | Above Rs. 2.25 Cr to Rs 2.50 Cr | Above Rs 2.50 Cr to Rs 4.75 Cr | Above Rs 4.75 Cr to Rs 5 Cr |
|---|---|---|---|---|
| 7 days- 14 days | 4.90% | 4.90% | 4.90% | 4.90% |
| 15 days- 29 days | 5.00% | 4.90% | 5.00% | 4.90% |
| 30 days- 45 days | 5.50% | 4.90% | 5.50% | 4.90% |
| 46 days- 60 days | 6.00% | 4.90% | 6.00% | 4.90% |
| 61 days- 90 days | 6.55% | 6.25% | 6.55% | 6.25% |
| 91 – 120 days | 7.10% | 6.00% | 7.00% | 6.00% |
| 121 – 180 days | 7.10% | 6.00% | 7.10% | 6.00% |
| 181 – 270 days | 7.20% | 6.00% | 7.20% | 6.00% |
| 271 days to less than 1 year | 7.30% | 6.00% | 7.30% | 6.00% |
| 1 Year | 7.65% | 7.30% | 7.65% | 7.30% |
| 1 year 1 day to 15 months | 7.60% | 6.00% | 7.55% | 6.00% |
| Above 15 months to 18 months | 7.30% | 6.00% | 7.30% | 6.00% |
| Above 18 months to 2 years | 7.10% | 6.00% | 7.10% | 6.00% |
| Above 2 years to 3 years | 6.75% | 6.00% | 6.75% | 6.00% |
| Above 3 years to 5 years | 6.75% | 6.00% | 6.75% | 6.00% |
| Above 5 years | 6.50% | 6.00% | 6.50% | 6.00% |
Note- These rates are subject to change. For interest rates for deposits above Rs. 5 crore, you can contact the nearest Federal Bank branch or visit their website.
Federal Bank NRO FD Premature Withdrawal
- Interest shall be payable for the completed period at applicable rate (Rate that was operative on the date of opening).
- Interest will not be paid if deposits are withdrawn prematurely before the minimum period applicable for the deposit scheme.
- The Bank may permit the withdrawal of a term deposit before the agreed-upon period, upon request from the depositor. However, this will be subject to a penalty determined by the Bank. The penal interest will be disclosed to the customer at the time of opening the NRO deposit.
| Period of Deposit | Penal Interest for deposits of less than Rs. 2 crore | Penal Interest for deposits of above Rs. 2 crore |
|---|---|---|
| Up to and including 15 days | 0% | 1% |
| Above 15 days | 1% | 1% |
What is NRO Fixed Deposit?
NRIs can apply for NRO Fixed Deposit accounts to hold their funds acquired before becoming an NRI, along with their Indian income like rent, dividends, Indian salary, etc. The interest gained from NRO fixed deposit accounts is subject to taxation in India according to the Income Tax Act of India.
Features and Benefits of Federal Bank NRO FD
Here are the features and benefits of Federal Bank NRO Fixed Deposits:
- With the Federal bank NRO FD scheme, NRIs can earn high returns on their earnings in India.
- NRO FD accounts can be opened jointly with non-resident or resident Indians.
- NRIs can choose a flexible tenure ranging from 7 days to above 5 years.
- Interest earned on Federal bank NRO FD can be repatriated after deduction of TDS. NRIs can repatriate up to USD 1 million in principal per financial year.
- The interest earned on your NRO deposit is subject to applicable TDS (30.90%).
- On submitting Tax Residency Certificate (TRC) and PAN, NRIs can also benefit from DTAA (Double Taxation Avoidance Agreement) to reduce TDS.
- NRIs can also avail premature withdrawal facility.
Eligibility for Federal Bank NRO Fixed Deposits
- NRO FD accounts can be opened by NRIs and PIOs.
- Individuals/entities of Pakistan nationality/origin and entities of Bangladesh origin are not permitted to open Federal bank NRO FD accounts.
Documents Required for NRO FD
Given below is a list of documents necessary for opening an NRO Fixed Deposit:
For NRIs
- Either an Indian PAN card or Form 60.
- A valid Indian passport.
- Evidence of NRI status, such as a copy of the Employment/Residence Visa or Work/Residence Permit.
- Address proof both from overseas and in India, in compliance with the Customer Identification Policy.
- A recent passport size color photograph.
- Additionally, for Seafarers: FEMA declaration, along with the current work contract and a copy of CDC along with the last page of the disembarkation stamp.
For PIOs
- A valid Indian passport.
- Valid proof of PIO status, such as a PIO/OCI card or any other document according to the Customer Identification Policy.
- Address proof both from overseas and in India, as per the Customer Identification Policy.
- A duly signed and filled-in PIO declaration.
- A recent passport size color photograph.
Contact SBNRI
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