What is a Federal Bank NRO Account?
A Federal Bank NRO (Non-Resident Ordinary) Account is a savings or current account designed for Non-Resident Indians (NRIs) to manage income earned in India. This includes rental income, dividends, pensions, or other earnings within India. It allows NRIs to deposit funds in Indian or foreign currency, which are converted to INR. Withdrawals can only be made in Indian Rupees.
The Federal Bank NRO Account is taxable as per Indian laws. The interest earned is subject to TDS. It also offers easy fund transfers and flexible banking services tailored for NRIs.
Types of Federal Bank NRO Accounts
Federal Bank provides two primary types of NRO accounts: NRO Savings Accounts and NRO Term Deposits. These accounts are tailored for Non-Resident Indians (NRIs) to manage their income in India efficiently.
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NRO Savings Accounts
NRO Savings Accounts enable NRIs to manage their Indian income with ease and flexibility.
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Fed NRO Power
- Offers free debit card and e-statements.
- Daily ATM withdrawal limit of ₹25,000.
- Requires a minimum balance of ₹5,000.
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Fed NRO Premium
- Includes a free debit card with higher withdrawal limits.
- Free inward RTGS/NEFT transactions.
- Minimum balance requirement of ₹25,000.
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Fed NRO Privilege
- Provides exclusive features like a premium debit card and priority customer support.
- Daily ATM withdrawal limit of ₹50,000.
- Requires a minimum balance of ₹100,000.
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NRO Term Deposits
NRO Term Deposits allow NRIs to earn interest on their funds while ensuring safety and liquidity.
- Competitive Interest Rates: As of December 2024, rates range from 6.80% to 7.40%, depending on the tenure.
- Flexible Tenure Options: Available for periods ranging from 1 year to up to 10 years.
- Tax Considerations:Interest earned is subject to TDS but may be exempt from Indian income tax under certain conditions.
- Premature Withdrawal: Allowed after one year with applicable penalties.
- Minimum Deposit: Starts at ₹500.
Federal Bank NRO Savings Account Interest Rates
Federal Bank offers the following interest rates for NRO (Non-Resident Ordinary) Savings Accounts:
| End of Day Balance |
Interest Rate (p.a.) |
| Up to and including ₹1 lakh |
3.00% |
| Above ₹1 lakh to less than ₹50 lakh |
3.00% |
| ₹50 lakh to less than ₹2 crore |
3.75% |
| ₹2 crore to less than ₹5 crore |
4.00% |
| ₹5 crore to less than ₹40 crore |
5.50% |
| ₹40 crore to less than ₹150 crore |
7.00% |
| ₹150 crore to less than ₹300 crore |
5.75% |
| ₹300 crore and above |
3.50% |
*Interest rates are updated as of December 2024.
NOTE: Federal Bank NRO Savings Account interest rates are calculated on the daily end-of-day balances and credited to the respective accounts on a quarterly basis.
Federal Bank NRO Term Deposit Account Interest Rates
Federal Bank offers the following interest rates for Non-Resident Ordinary (NRO) Term Deposit Accounts:
| Tenure |
Interest Rate (per annum) |
| 7 days to 29 days |
3.00% |
| 30 days to 45 days |
3.50% |
| 46 days to 180 days |
5.50% |
| 181 days |
6.50% |
| 182 days to 270 days |
6.25% |
| 271 days to less than 1 year |
6.50% |
| 1 year |
7.00% |
| Above 1 year to 399 days |
7.25% |
| 400 days |
7.35% |
| 401 days to less than 2 years |
7.25% |
| 2 years to 776 days |
7.15% |
| 777 days |
7.40% |
| 778 days to less than 3 years |
7.15% |
| 3 years to less than 50 months |
7.10% |
| 50 months |
7.40% |
| Above 50 months to less than 5 years |
7.10% |
| 5 years |
7.10% |
| Above 5 years |
6.60% |
*Interest rates are updated as of 20 December 2024.
NOTE: Please note that NRO accounts are not eligible for the additional interest rates offered to senior citizens.
Eligibility Criteria to Apply for a Federal Bank NRO Account
To open a Federal Bank NRO account, applicants must meet specific eligibility requirements:
- Age Requirement: Applicants must be at least 18 years old.
- NRI Status: Must be a Non-Resident Indian (NRI) as defined by the Reserve Bank of India.
- Valid Documents: Submission of valid identification and address proof is necessary.
- Minimum Balance: Different accounts have varying minimum balance requirements, starting from ₹5,000.
Documents Required to Open a Federal Bank NRO Account
When applying for a Federal Bank NRO account, the following documents are required:
- Identity Proof: A valid passport (first and last pages) containing your name, photo, and date of birth.
- Visa Proof: A copy of your valid visa or work permit.
- Address Proof: Documentation for both overseas and Indian addresses (e.g., utility bills, bank statements).
- PAN Card: If available; if not, submit Form 60/61.
- Photographs: Recent passport-sized photographs.
- Attestation: Documents must be attested by an authorized body such as an Indian Embassy or a public notary.
Benefits of Opening a Federal Bank NRO Account
The key benefits of opening a Federal Bank NRO Account are as follows:
- Convenient Banking: Federal Bank's NRO accounts provide easy access to manage income earned in India, such as rent, dividends, and interest from investments.
- High Interest Rates: Account holders can earn competitive interest rates on their deposits, with rates up to 7.30% on fixed deposits as of 2024.
- Flexible Currency Management: You can deposit foreign currency into your NRO account, which is automatically converted to Indian Rupees (INR) for ease of transactions.
- Online Banking Features: Enjoy modern banking conveniences like internet and mobile banking, making it easy to manage your account from anywhere in the world.
- Repatriation Benefits: You can repatriate up to USD 1 million per financial year from your NRO account, provided all taxes are settled in India.
- Joint Account Options: NRO accounts can be held jointly with residents on a "Former or Survivor" basis, allowing for shared management of funds.
- No Attestation Required: Opening an NRO account is hassle-free, with no need for document attestation, and you can apply online within minutes.
Conclusion
A Federal Bank NRO Account in 2024 is a smart choice for NRIs to manage their Indian income effortlessly. With competitive interest rates, repatriation options, and convenient digital access, it offers a secure and efficient solution for your financial needs in India.
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