Federal Bank on Tuesday launched a deposit scheme for NRIs titled ‘Deposit Plus’, which offers higher interest than the existing Non-Residential External (NRE) NRE fixed deposits. The maximum interest rate offered in this scheme is 7.50 percent for a tenure of 700 days.
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The interest accrued on this scheme will be added to the principal (re-investment plan) on a quarterly basis. It is an opportunity for non-residents to invest their funds as the interest earned is exempt from income tax. The deposits cannot be closed prematurely.
However, customers have the option of availing loans up to 75 percent of the deposit amount in the event funds are required prior to maturity.
While officially launching the new deposit scheme, Shalini Warrier, Executive Director of the Bank remarked, “The bank is a key player in the non-resident India segment, holds a market share of close to 7 percent in NR segment and routes 22 percent of personal inward remittances to India."
According to Federal bank, the new variant of NR deposit scheme will be an attractive investment option for NRI customers to gain better return than normal NRE term deposits.
"Federal Bank has a significant share of the NRE market as well as the remittance business in India. This product will help Federal Bank make further in roads and build market share," the bank said.
Here are latest fixed deposit rates offered by Federal Bank:
| Period | Single Deposit Less than ₹200 Lakhs - General Public | Single Deposit Less than ₹200 Lakhs - 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 90 days | 4.25% | 4.75% |
| 91 days to 119 days | 4.50% | 5.00% |
| 120 days to 180 days | 4.75% | 5.25% |
| 181 days to 270 days | 5.00% | 5.50% |
| 271 days to 332 days | 5.50% | 6.00% |
| 333 days | 5.50% | 6.00% |
| 334 days to less than 1 year | 5.50% | 6.00% |
| 1 year | 6.25% | 6.75% |
| Above 1 year to less than 20 months | 6.00% | 6.50% |
| 20 months | 6.25% | 6.75% |
| Above 20 months to 699 days | 6.10% | 6.60% |
| 700 Days | 7.25% | 7.75% |
| 701 days to less than 3 years | 6.40% | 6.90% |
| 3 years to less than 5 years | 6.50% | 7.00% |
| 5 years to 2221 days | 6.30% | 6.95% |
| 2222 Days | 6.50% | 7.15% |
| 2223 days and above | 6.30% | 6.95% |
(Source: Federal Bank)
(Edited by : Anshul)
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