Federal Bank has launched a deposit scheme for NRIs titled ‘Deposit Plus’. The scheme offers a higher interest rate than the existing NRE fixed deposits, the bank said in a statement. The maximum interest rate offered in Deposit Plus scheme is 7.50% for a tenure of 700 days.
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The bank said that the interest accrued on this scheme will be added to the principal (re-investment plan) on a quarterly basis. Deposit Plus is an exciting 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% of the deposit amount in the event funds are required prior to maturity.
“Federal Bank is excited to announce a deposit scheme that offers a higher interest rate on NRE Deposits. We have always been at the forefront of providing the best offers and rates to our customers. The Bank is a key player in the Non-Resident India segment, holds a market share of close to 7% in the NR segment and routes 22% of personal inward remittances to India. We are confident, this scheme will delight our NR patrons,” said Shalini Warrier, Executive Director of Federal Bank.
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The new variant of the NR deposit scheme may be an attractive investment option for NRI customers to gain better returns than normal NRE term deposits. Federal Bank is a private sector bank with a network of around 1,323 banking outlets and 1,876 ATMs/Recyclers spread across the country. Federal Bank has representative offices at Dubai and Abu Dhabi, which serve as nerve centres for Non-Resident Indian customers in the UAE. The Bank also has an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City.
