Federal Bank has a huge base of NRI customers at over 1.2, million with a large network of remittance partners across the globe. It has remittance arrangements with more than 110 banks and exchange companies worldwide, accounting for 15% of India’s inward remittances. But, this bank has only too few branches and ATMs in India, especially considering the fact that it is a 70-year-old institution. Even overseas, it has representative offices only in Abu Dhabi, Dubai, Qatar, Kuwait and Oman.
Federal Bank NRE Account Features
Key features offered by Federal Bank include:
- Wide range of interest rates for the NRE savings account, which are lower for deposits less than or up to ₹50 lakhs at 3.5% p.a. For deposit balances above ₹10 crore, interest rates are higher, ranging from 6.3% to 7.2%. These are calculated on daily account balances and paid on a quarterly basis.
- High interest rates for fixed deposits, at an average of 7% for short and long-term tenures.
- More than 6 types of NRI accounts are offered, with exclusive features
- Free internet, phone and mobile banking
- International Visa Gold debit card with ₹100,000 daily limit for ATM withdrawals and ₹100,000 daily limit for online and retail shopping.
- Free email and mobile notifications
- Free cheque book, up to 40 leaves per year
- Low average monthly balance requirement of ₹5,000
- Easy remittance services from several countries across the world, including the US, UK and Australia. Customers can choose from several options, like SWIFT, Remit2India, Transfast, Xoom Corporation and Lock Box.
- Low transaction charges and fees on account usage.
- For premium and privilege NRI account holders, there are many relaxations with respect to banking charges and withdrawal limits.
- Exclusive insurance schemes for NRIs, such as Fed Oriental Pravasi Insurance
- Customers can pay utility bills through internet banking
- Loan schemes for NRI customers, including car, house and gold loans.
- Priority banking branches for NRIs in many Indian cities
- Remittances through cash transfers are allowed, via Western Union, Xpress Money and FED e-cash schemes, among others.
- Very few branches in many Indian cities, particularly in Northern India
- Absence of branches in major overseas locations, such as the US, UK and Europe
- Account opening can take a while to process
- Lower interest rates for low deposit balances
- All modern banking facilities available
- Easy and economical remittance services; with a huge range of channel options
- Low MAB (Monthly Average Balance) requirements
- Comparatively good customer services
- Lower interest rate on balance up to ₹50 lakhs than most Indian banks
- Very few ATMs and branches in Indian cities
- No branches overseas, except in the Middle East.
Do you have experience banking with Federal bank and its NRI services? Please share your experience below so others can benefit from it.