Federal Bank launched a Deposit scheme for NRIs titled ‘Deposit Plus’, which offers higher interest than the existing NRE fixed deposits. The maximum interest rate offered in this scheme is 7.50% for a tenure of 700 days.
The interest accrued on this scheme will be added to the principal (re-investment plan) on a quarterly basis. It 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.
While officially launching the new deposit scheme, Ms. Shalini Warrier, Executive Director of the Bank remarked, “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”.
The new variant of the NR deposit scheme will surely be an attractive investment option for NRI customers to gain better returns than normal NRE term deposits. Federal Bank has a significant share of the NRE market as well as the remittance business in India. This product will help Federal Bank make further inroads and build market share.
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