Federal Bank Recurring Deposit Interest Rates 2026

The interest rates for recurring deposit less than Rs.3 crores are as follows: 

Note: These interest rates mentioned above are effective from 1 January 2026 and are subject to change at the bank’s discretion  

Federal Bank Short-Term Recurring Deposit Interest Rates

Short-term recurring deposits are those which have a tenure between 180 days to less than 1 year. The interest offered on such RDs by the bank is in the range of   4.50% p.a. to 6.25% p.a for to general citizens. Senior citizens are offered between 5.00% p.a. to 6.75% p.a.

Federal Bank Medium-Term Recurring Deposit Interest Rates

For medium term recurring deposits, general citizens are offered interest in the range of 6.25% p.a. to 6.75% p.a. Citizens above the age of 60 years are offered between 6.75% p.a. to 7.25% p.a. Medium-term RDs are those which have a deposit tenure between 12 months and 36 months. 

Federal Bank Long-Term Recurring Deposit Interest Rates

Long term Recurring Deposits are those which have a deposit tenure above 36 months. The interest paid by Federal Bank to general citizens on such deposits is 6.40% p.a. to 6.75% p.a. Senior citizens are offered the same  ranging to 6.90% p.a. to 7.25% p.a. 

Key Features of Federal Bank Recurring Deposit

No Maximum Investment Limit

Customers can invest any amount depending on their financial capacity.

Loan Against RD

You can avail of a loan or overdraft against your RD balance without breaking the deposit.

Flexible Tenure Options

Choose a tenure from 6 months to 10 years based on your financial goals.

Senior Citizen Benefits

Additional interest rates for individuals aged 60 years and above.

Nomination Facility

Ensures smooth transfer of funds to nominees in unforeseen circumstances.

Automatic Renewal Option

Deposits can be auto-renewed upon maturity for uninterrupted savings growth.

How to Open a Federal Bank RD Account

You can open an RD account through:

1. Net banking
2. Mobile banking app
3. Visiting the nearest branch
4. Through standing instruction from your savings account

Basic documents required:

1. PAN Card
2. Aadhaar Card
3. KYC-compliant savings account

Premature Withdrawal Rules

1. Premature closure is allowed.
2. Interest will be paid as per applicable rates for the period the deposit remained with the bank.
3. A nominal penalty may be charged.

Loan Against Federal Bank RD

Instead of closing your RD during financial emergencies, you can:

1. Avail a loan up to a certain percentage of your RD balance
2. Continue earning interest on your RD
3. Pay interest only on the loan amount utilized

This makes RD a dual-benefit instrument — savings + liquidity support.

Who Should Invest in Federal Bank RD?

Federal Bank RD is suitable for:

1. Salaried employees with fixed monthly income
2. Senior citizens seeking stable returns
3. Students and young earners starting small
4. Conservative investors avoiding market risk
5. Individuals building an emergency fund

Advantages of Choosing Federal Bank RD

1. Guaranteed returns
2. Capital protection
3. Low entry amount (₹50 minimum)
4. Flexible tenure
5. Loan facility available
6. Competitive interest rates

Things to Consider Before Investing

1. Interest earned is taxable as per your income slab
2. TDS may apply if interest exceeds prescribed limits
3. Premature withdrawal may attract penalty
4. Fixed monthly installment cannot usually be changed mid-tenure

Example: RD Investment Calculation

Assume:

1. Monthly Deposit: ₹5,000
2. Interest Rate: 6.75% p.a.
3. Tenure: 36 months

At maturity:

1. Total Investment: ₹1,80,000
2. Estimated Maturity Value: Approx. ₹1,98,000+
3. Interest Earned: Approx. ₹18,000

(Actual maturity value may vary based on compounding frequency.)

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