Federal Bank Smart Deposit – Terms & Conditions

  1. Only Indian Resident customers are eligible to open Smart Deposit accounts under single mode of operation.
  2. Minimum amount for the scheme is Re. 1 (One Rupee) and Maximum amount that can be invested in a month is Rs 50000 (Rupees Fifty thousand only).
  3. By proceeding ahead, you hereby agree and accept to be bound by the Program Terms and Conditions (“T&Cs”) mentioned below for the Program. 
  4. The remittances can be made in multiples of Re 1. There is no due date for the deposit and any number of remittances can be made in the account. All deposits into the Account should be by way of transfer from Savings account or UPI/NEFT/RTGS/IMPS.
  5. Minimum tenure of deposit is 7 days. No interest will be paid by the Bank if the deposit is closed within 7 days of opening the same.
  6. Maximum tenure of deposit is 12 months.
  7. Interest is applied on a daily product basis, i.e. simple interest on end of day balances. The interest amount shall be paid to the depositor/s on the maturity date or on completion of the tenure, whichever is later.
  8. Senior citizens are eligible for 0.5% additional interest from card rate as per Bank’s policy. Additional rate of interest is applicable only if the customer has crossed the age of 60yrs at the time of opening of deposit.
  9. Rate of interest is fixed and premature penalty clauses are as per the details provided in Bank’s website
  10. Tax is deducted at source on interest on deposits held by the resident if the interest paid or payable by the Bank for the financial year exceeds the threshold limit specified by Income Tax Act, 1961. Currently, the threshold limit for this purpose is Rs. 40,000 p.a. The TDS amount calculated on the accrued interest is remitted to the tax authorities on behalf of the Customer by the Bank. The interest on the TDS amount from April 1st till maturity of the deposit is adjusted from the interest payable to the client. As per provisions of Finance Act 2009, w.e.f April 01, 2010, valid PAN is required to be submitted by all Customers whose tax needs to be deducted. In the absence of a valid PAN, tax will be deducted at the prevailing rate or 20% whichever is higher. Also, Form 15G/H shall not be treated as valid unless PAN is mentioned in such forms. In case the deposit holder does not want the Tax to be deducted at source, they may submit Form 15G / 15H (other than company, firm or co-operative society)/ Exemption Certificate under Section 197 (in case of all holders)/ or any other Tax Exemption Certificate with the Bank. Such form or tax exemption certificate has to be submitted every financial year for recurring deposit held and on each renewal of the deposit.
  11. On maturity, the account will be auto-closed and entire proceeds will auto credited to linked Savings accounts.
  12. There is no facility for auto-renewal or loan facility.
  13. Nomination facility is available for the Account in the names of individuals. Only one nominee is permissible for an Account. The Depositor/s is/are at liberty to change the nominee, through declaration in the appropriate form to revise the nomination during the tenure of the Account.
  14. The depositor undertakes to indemnify and keep indemnified the Bank from and against all actions, demands, losses, actions, costs and expenses whatsoever which the Bank may at any time incur, sustain or be put to as a consequence of or by reason of or arising out of providing any service or due to negligence/mistake on the part of the depositor or non-compliance by the depositor of any of the terms and conditions mentioned herein or by reason of the Bank in good faith taking or refusing to take action on any instruction given by the depositor
  15. All taxes, duties, levies or other statutory dues and charges applicable in connection with the benefits accruing as per the terms of these recurring deposits will be recoverable from the Customer. The deposits with the Bank are insured with Deposit Insurance and Credit Guarantee Corporation (DICGC) and in case of liquidation of the Bank; DICGC is liable to pay each depositor through the liquidator, the amount of his deposit upto Rs. one lakh within two months from the date of receipt of claim list from the liquidator. Customer should carefully examine the entries made in the statement of accounts/passbook and draw bank’s attention to any errors/omissions/discrepancies that may be discovered within 30 days from the date of the entries failing which the same shall be deemed to be correct and accepted by the Customer and the Customer shall not be entitled to question the correctness/accuracy thereof. The Bank may disclose information about Customer’s account if required or permitted by any law, rule or regulations or at the request of any public or regulatory authority or if such disclosure is required for the purposes of preventing fraud, without any specific consent of the Customer. These Terms and Conditions shall be governed by and construed in accordance with the laws of India. These terms and conditions are subject to change/modification at the sole discretion of the Bank. The Bank may give notice of any changes either through email address as recorded with the Bank (which will be regarded as being in writing) or in writing by delivering them by hand or by sending them by post to the last address given by the deposit holder/s or on its website or any other mode as may be deemed fit by the Bank. In addition, the Bank may also publish notice of general nature, which are applicable to all deposit holders of similar nature on its website. Such notice will be deemed to have been served individually to the deposit holder/s.
  16. Company reserves the right to carry out checks & controls as it deem fit and proper, before disbursal of the referral amount to the Referrer.
  17. Change in Terms: The Bank reserves the right to revise the terms and conditions contained herein and shall notify the Depositor/s of such revised terms and conditions one month prior to its implementation. Such revised terms and conditions shall then be binding on the Depositor/s.
  18. “Triggers” means the customized triggers that are required to be set by the Customer with The Bank which shall enable The Bank to send the Alerts relating to his Account."
  19. Disclaimer " The Bank may, at its sole discretion, utilizes the services of external service provider/s or agent/s and on such terms as required or necessary, in relation to its products/services."