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.
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.
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 (GIFT City).