Founded in 1931, Federal Bank is one the leading commercial banks in the private sector. The Bank offers a range of banking products and services that include internet banking, mobile banking, cash management, online fee collection, merchant banking services and insurance and mutual funds products. Federal bank also offers various types of accounts to choose from based on the customer’s needs and requirements. The account opening process is extremely simple, as one has to follow the basic steps of submitting the KYC (Know Your Customer) documentation and collection of the initial account opening kits. Federal Bank makes the process even simpler by allowing the customers to open their account online. Once the documents are verified, an email communication is sent to the customer regarding account activation. Customer’s account opening kit is also sent via email, if the process is completed online. Also the customer has an option of collecting it from the nearest branch of the bank where the account has opened.
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Of the various deposit accounts that Federal Bank has to offer to its customers, the Recurring Deposit scheme is an excellent option, in case the customers have to start off with their savings plan. One can start off his/her Federal Savings Deposit account with a minimum amount of Rs. 50 and there is no maximum amount set for the recurring deposit scheme. The customer can choose the amount to be deposited in the scheme every month and the term period for which the Recurring Deposit account will be active. To make the process of monthly payments easy for the customer and to prevent any lapse in payment, a Standing Instruction (SI) can be set on the savings bank account for the monthly amount to be paid to the recurring deposit scheme. On a specified date, the standing instruction enables the amount to be debited from the savings bank account and credited to the Recurring Deposit account. The interest, however, cannot be withdrawn before the deposit matures. The interest is calculated on quarterly compounding. The customers can also avail loan against the amount present in the deposit account. The term for the Recurring Deposit is capped between 6 months to 10 years.
The service is available to a variety of customers, such as individuals holding a joint account with another, sole proprietors, clubs and associations, joint stock companies, minors with guardians, and firms. The monthly payments can be done online through net banking or offline by visiting the nearest branch. As an alternative, a standing instruction can also be set for the same. Federal bank’s official website has an additional feature of interest calculator where the customer can enter the amount to be paid every month, with the rate of interest and the term of the deposit. The calculator calculates the amount that the customer would receive at the end of the term along with the total interest earned.
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RD Xtra Gain is a twin product of the regular Recurring Deposit scheme of the Federal Bank which includes all the features of a typical recurring deposit and also other attractive features. One can avail a loan against the RD, after a period of twelve months and can terminate the recurring deposit plan after the loan is availed. If the recurring deposit is discontinued after its maturity, the principal amount along with the interest is directly credited to the customer’s savings account.