Latest Federal Bank RD Interest Rates: Everything You Need to Know

Recurring deposits (RDs) are one of the safest ways to grow your money steadily. With small monthly instalments, you build savings without locking a big amount upfront. Federal Bank, through its Federal Savings Fund scheme, offers RDs with assured returns and flexible tenures of up to 10 years.

The Federal Bank RD interest rates effective 18 August 2025 go as high as 6.70 percent for select tenures. Senior citizens also earn an extra 0.50 percent, making RDs a reliable choice for retirement income.

Read on to explore the Federal Bank recurring deposit interest rates 2025, how they vary for regular customers and senior citizens and the key benefits of opening an RD with the bank.

About Federal Bank

Federal Bank, headquartered in Aluva Kerala is one of India’s largest private sector commercial banks. It operates across retail banking, wholesale banking, treasury operations and other services. Among its wide range of products, recurring deposits remain a popular choice for those who prefer safe and disciplined savings.

With Federal Bank RD you can start with a small deposit, choose a tenure between 7 days and 10 years and earn assured interest. The bank also allows loans against your RD balance, adding liquidity to your savings.

Federal Bank RD Interest Rates 2025

RDs at Federal Bank earn the same rate as Resident Term Deposits of the chosen tenure. Rates below are effective 18 August 2025 and apply to the Federal Savings Fund scheme.

Tenure	General Public (p.a.)	Senior Citizens (p.a.)
7 days to 29 days	3.00%	3.50%
30 days to 45 days	3.25%	3.75%
46 days to 90 days	4.25%	4.75%
91 days to 180 days	4.50%	5.00%
181 days	6.00%	6.50%
182 days to 270 days	5.75%	6.25%
271 days to less than 1 year	6.00%	6.50%
1 year	6.40%	6.90%
Above 1 year to 749 days	6.50%	7.00%
750 days	6.60%	7.10%
751 days to 998 days	6.50%	7.00%
999 days	6.70%	7.20%
1000 days to 10 years	6.50%	7.00%

These Federal Bank recurring deposit interest rates 2025 apply to domestic residents and are ideal for those seeking predictable returns.

Federal Bank RD Interest Rates for Senior Citizens

Senior citizens earn an additional 0.50 percent on most slabs. For example, at 6.50 percent, senior citizens earn 7.00 percent. And at 6.70 percent, they earn 7.20 percent. The Federal Bank RD interest rates for senior citizens are designed to support financial independence.

Federal Bank RD Interest Rates for NRE Accounts

Federal Bank allows Non-Resident External (NRE) customers to open RDs through its Fed Flexi Smart SaverRD scheme. NRE RDs earn the same rate as NRE Term Deposits for the chosen tenure. This ensures NRIs can grow their savings securely while keeping funds transferable.

Types of Federal Bank RD Accounts

Federal Bank offers flexible RD tenures that you can classify into three categories:

• Short-term RDs: From 6 months to less than 1 year, with lower interest rates but high liquidity
• Medium-term RDs: From 1 year to 3 years, with higher interest returns for residents and senior citizens
• Long-term RDs: From 3 years up to 10 years, suitable for long-term savings goals

Benefits of a Federal Bank RD

• Low entry amount: Start with just ₹50
• No maximum limit: Deposit as much as you want
• Disciplined savings: Build a regular saving habit
• Loan facility: Avail loans against RD balance if needed
• Senior citizen benefit: Earn higher returns above age 60
• Liquidity: Premature closure is allowed with penalty
• No market risk: Returns are guaranteed throughout the tenure

Example of RD Earnings

Suppose you invest ₹5,000 every month in a Federal Bank RD for 3 years at 6.50 percent. At maturity, you will receive around ₹1.99 lakhs including interest. This example shows how small monthly deposits, when left undisturbed, can grow into a sizeable sum.

What to Remember Before Opening a Federal Bank RD

• Interest is compounded quarterly and paid on maturity
• Premature closure attracts a penalty of 1 percent on the applicable rate if held beyond 15 days. No interest is paid if closed within 15 days
• TDS is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G or 15H if eligible
• Rates are subject to revision depending on RBI policy changes. Always check the ‘Rates effective date’

How to Open a Federal Bank RD

You can open an RD quickly through:

• FedMobile app
• FedNet internet banking
• Feddy, the AI-powered virtual assistant
• Nearest Federal Bank branch

All you have to do is choose the tenure, set the monthly instalment and confirm. Your RD starts immediately. Federal Bank recurring deposits are a simple and safe way to build wealth over time. With competitive rates, special benefits for senior citizens and NRE options, they suit a wide range of savers.

And if you want another safe way to grow your money, Fibe has you covered. With Fibe, you can start with as little as ₹1,000 and book your FD in just a few clicks!

FAQs on Federal Bank RD Interest Rates

Is there a penalty for late or missed RD instalment in Federal Bank?

Yes, a penalty applies if you miss or delay consecutive instalments. This reduces your maturity value.

Is tax deducted at source (TDS) on RD interest in Federal Bank?

Yes, if your annual interest income crosses the exemption limit. Senior citizens enjoy a higher exemption. Form 15G or 15H can be submitted if eligible.

How often does Federal Bank revise its RD interest rates?

Federal Bank updates deposit rates periodically, usually after RBI policy changes. You should always check the live rate page before booking.