Federal Bank, one of India’s leading private sector banks, has unveiled a new term deposit product, Annuity Deposits, specifically designed for resident customers. This innovative product offers customers the opportunity to receive a stable income over a tenure ranging from 5 to 20 years. Customers can choose their preferred payout frequency – monthly, quarterly, half-yearly, or yearly. Each payout will include a portion of the principal along with the interest earned. The product was officially launched by Shalini Warrier, Executive Director, Federal Bank in the presence of senior executives Eqbal Manoj (Branch Banking Head, Federal Bank), P. V. Joy (Country Head of Deposits, Wealth & Banca, Federal Bank) and Damodaran C, (Chief Risk Officer, Federal Bank).
Commenting on the launch, Shalini Warrier, ED and Business Head at Federal Bank, expressed enthusiasm about the Annuity Deposits, stating “The bank has launched yet another innovative product for its customers. The Annuity deposit product gives opportunity to customers to earn stable income for a very long tenure up to 20 years which is very unique in the banking industry. At Federal Bank we are committed to provide more customer centric products which enables them to save and generate wealth”.
The minimum investment amount required to open an annuity deposit is Rs. 15,00,000, with a maximum limit of Rs. 2,00,00,000. Additionally, customers have the flexibility to prematurely close their accounts should any emergency need arise. This product is particularly well-suited for customers seeking a guaranteed, pension-like income for longer periods.
Customers can open annuity deposits at attractive interest rates and tenures as detailed below:
| Tenure | Resident General Public | Resident Senior Citizen |
| 5 Years | 7.10% | 7.60% |
| Above 5 Years to 10 Years | 6.60% | 7.10% |
| Above 10 Years to 20 Years | 6.25% | 6.40% |
