High Interest Rate

The interest accrued on this scheme will be added to the principal (re-investment plan) on a quarterly basis. The deposits cannot be closed prematurely giving the customers an option of availing loans up to 75 per cent of the deposit amount whenever funds are required before maturity

The Federal Bank has launched a deposit scheme for NRIs under the name ‘Deposit Plus’, which offers higher interest than the existing NRE (Non-Resident External) fixed deposits. The maximum interest rate offered in this scheme is 7.50 per cent for a period of 700 days.

The interest accrued on this scheme will be added to the principal (re-investment plan) on a quarterly basis. It will serve the Non-Residents (NR) an opportunity to invest their funds, as the interest earned is exempt from Income Tax. The deposits cannot be closed prematurely giving the customers an option of availing loans up to 75 per cent of the deposit amount whenever funds are required before maturity.

The Executive Director of the Bank, Shalini Warrier while officially launching the new deposit scheme said, “Federal Bank is excited to announce a deposit scheme that offers a higher interest rate on NRE Deposits. The Bank is a key player in the Non-Resident India segment, holds a market share of close to 7 per cent in NR segment and routes 22 per cent of personal inward remittances to India.”

Federal Bank holds a significant share of the NRE market along with the remittance business in India. This product will help Federal Bank make further in roads and build market share.

According to the bank, this new variant of NR deposit scheme will prove to be a lucrative investment option for NRI customers than normal NRE term deposits.