Private sector lender, the Federal Bank has announced a revision of its service charges and fees, which will take effect on June 1, 2025. The revised schedule includes a range of services, such as ATM transaction fees, cash handling charges, penalties for non-maintenance of average monthly balance (AMB), locker rents, and account closure charges. Customers are advised to review the new structure to understand its potential impact on their banking costs and manage their accounts accordingly.
Cash handling charges
For savings accounts, The Federal Bank is offering up to five free cash transactions (including withdrawals and deposits) or transactions totalling Rs 5 lakh per month, whichever is reached first. After this free limit, there is a fee of Rs 4 for every Rs 1,000 or part of that amount, with a minimum price of Rs 100 per transaction. These changes are effective June 1, 2025.
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Charges for non-maintenance of Average Minimum Balance
Savings account holders are required to maintain a specified Average Monthly Balance (AMB), and failure to do so attracts non-maintenance charges. These charges vary based on the extent of the shortfall and the type of savings scheme. The Federal Bank mandates that its customers maintain an AMB of Rs 5,000 or more for Club Scheme, Delite Scheme, all NRI schemes, and resident savings accounts. The bank’s revised structure imposes a charge of Rs 75 on general customers for a shortfall of up to 20% in AMB; the fees can go up to Rs 375 for a 100% shortfall.
However, senior citizens receive some concessions, with charges for non-maintenance of AMB for them ranging from Rs 60 to Rs 300. For all other savings schemes and accounts held in rural branches-regardless of the scheme-the charges are slightly lower. General customers in this category are required to pay between Rs 60 and Rs 300 depending on the shortfall, while senior citizens are charged between Rs 50 and Rs 250.
Shortfall in AMB Club Scheme, Delite Scheme, All NR Schemes & all resident SB schemes with AMB requirement of 5000 & all other SB schemes & all accounts in rural branches irrespective of scheme
above.
ATM transaction charges
There will be charges for current and savings account holders who use their debit cards at other bank ATMs in excess of the free transaction limit. At The Federal Bank, the cost of each financial transaction, such as a cash withdrawal, is Rs 23, while the cost of each non-financial transaction, such as a balance inquiry or mini statement, is Rs 12. The ATM at Federal Bank has no fees.
Withdrawal transactions at other bank ATMs, ECOM, or POS that are declined due to insufficient funds in the customer’s account will incur a charge of Rs 25 per instance.
For inward cheque returns
The charges vary based on account type and customer category. The Federal Bank charges a fee of Rs 400 per return instance for savings bank (SB) accounts held by rural customers and senior citizens. For all other SB account holders, the charge is Rs 500 per instance.
Locker rent
For its rural and semi-urban branches, The Federal Bank charges rent annually for lockers based on their size. For a small locker, the annual rent is Rs 2,000 with a refundable key deposit of Rs 16,000. A medium-sized locker can be rented at Rs 3,300 per annum with a key deposit of Rs 19,900. For large lockers, the annual rent is Rs 5,500, and the required key deposit is Rs 26,500.
At metro and urban branches, locker rent varies depending on both the locker size and the specific branch location. For small lockers, the annual rent ranges from Rs 2,950 to Rs 5,000, with a refundable key deposit between Rs 18,850 and Rs 25,000. Medium-sized lockers are priced between Rs 3,950 and Rs 6,800 per annum, with key deposits ranging from Rs 21,850 to Rs 30,400. For large lockers, the annual rent falls between Rs 7,400 and Rs 12,800, while the key deposit ranges from Rs 32,200 to Rs 48,400.
Closure of accounts charges
At the Federal Bank, if a savings account is closed within six months, a fee of Rs 100 is applicable. For closures after six months but before 12 months, the charges are Rs 100 for rural or senior citizen savings accounts and Rs 300 for other savings accounts; no charges apply if a savings or current account is closed within 14 days from the first deposit.
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