Federal Bank Launches Fed Rise

Kerala-based private lender Federal Bank has launched an innovative loan product, Fed Rise, said to be the first of its kind offering in the banking industry.
The facility offers enormous operational comfort and flexibility to the customers. It is an overdraft facility against recurring deposits, a bank's release said.
"At the time of opening of a recurring deposit, 90 per cent of the maturity value of the RD is sanctioned simultaneously as an overdraft limit.
"Then at any point of time, 90 per cent of the balance (inclusive of interest) in the RD can be drawn by the customer for his/her needs. As the customer makes payment to the recurring deposit account, the drawing power rises."

When a purchase is made, or a bill payment or an ATM withdrawal is done, if there is a shortfall of funds in the saving bank account, the system automatically pulls out the deficit amount from the overdraft account subject to the funds position, it said, adding that the withdrawals can be repaid conveniently as preferred by the customer.
With the launch of Fed Rise, A Surendran, GM and Head of the Retail Banking Division of the bank commented 'Fed Rise is going to be a trend setter and a sought after loan product owing to the operational ease it offers as a result of automatic placement of funds at the client's disposal'.

As the facility is sanctioned at the time of opening of RD itself, there is no need for the customer to visit the bank for availing the limit in between. The amount can be withdrawn using debit card, POS, Net banking, mobile banking making it a 24/7 digital product. This product is available at all 1150+ branches of Federal Bank all over India.