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How to Open a Fixed Deposit Account?

Opening a fixed deposit account is one of the best and safest decisions you can make to invest your hard-earned money. Fixed deposit accounts offer a fixed amount of interest throughout the investment period, which helps you calculate and predict the returns. This makes it very helpful and fruitful for the investor to plan his financial needs accordingly. That is why several investors are making this investment choice.

There are many different ways to open a fixed account, such as visiting a bank branch, online banking, or mobile banking. In this article, we will discuss all the ways to open a fixed deposit account; along with that, we will discuss the highest FD interest rates offered by banks on FDs. Also, we will discuss the types and benefits of FD plans. 

What is a Fixed Deposit Account?

A fixed deposit account is an investment option in which you invest a specific amount in a bank for a fixed tenure. In this account, the fixed interest is offered throughout the lock-in period. This assures the guaranteed returns for investment. 

Fixed deposits, due to their range of tenure options, can meet a variety of financial goals. They are a reliable option, providing peace of mind with steady returns.

Ways to Open a Fixed Deposit Account 

There are different ways to open a fixed deposit account 

  1. Visiting the Bank Branch

If you already hold a savings account in the bank, then it becomes very easy for you to open a bank fixed deposit account. You have to get the FD account application from the branch.

Once you get the form, follow these steps:

  • Fill out the form with your details.
  • Fill in the amount and tenure for which you want to invest.
  • Fill in the nominee details.
  • Provide a cheque in your favour of yourself for FD.
  • Deposit the form at the bank with all the required documents.
  • The FD account will be opened, and you will get the receipt.
  1. Net Banking 

This procedure to open an FD account will be different for all the banks due to their net banking user interface. But, there are some of the common steps to open an account through net banking:

  • Open the website of your bank.
  • Login or register with the required credentials (user name and password).
  • Choose the option to open an FD account.
  • Fill in the details to proceed further.
  • Choose the amount and the tenure.
  • Add the nominee details.
  • Check and make sure all the details are correct.
  • Pay the required amount through net banking.
  • Get the e-receipt for the account. 
  1. Mobile Banking App

Mobile banking apps are very common these days, and they offer various options that make banking very easy in terms of reach and accessibility. You can perform different banking tasks from your phone with ease; opening an FD account is one of them. There are simple steps to open an FD account as follows:

  • Download and install the banking app on your phone.
  • Log in with your username and password.
  • Find the option in the user interface similar to “Open FD account”.
  • Select the amount and duration.
  • Click on the proceed, and it will show a final summary of details; proceed further.
  • Enter the transaction PIN, and the amount will be debited from your account.
  • The newly opened FD account will be reflected in your mobile app.

Who is Eligible to Open an FD Account

  • Residents 
  • Hindu undivided families 
  • NRI 
  • Minors 
  • Senior citizens 
  • Companies 
  • Individuals or joint investors 
  • Societies or clubs 
  • Sole proprietorship 
  • Partnership firms 
  • Trust accounts 

Documents Required

Existing Customers 

  • If you are an existing customer and hold a bank account, you are not required to bring all the documents. Instead, you have to bring a copy of the KYC documents.

New Customers

  • KYC Documents – PAN/Aadhaar card/Voter ID/Passport 
  • Recent passport-sized photographs 

Hindu Undivided Family 

  • HUF deed and declaration 
  • KYC documents 
  • PAN card 
  • Recent passport-sized photographs 

Public/Private Limited Company 

  • Company PAN card 
  • Latest utility bills 
  • Board resolution to open FD  
  • Bank account statement 
  • Recent passport-sized photographs 
  • Registration or incorporation certificates 
  • KYC of authorised signatories 

Partnership Firm

  • PAN card 
  • Registration certificate 
  • KYC of all the authorised signatories 
  • Recent passport-sized photographs 
  • Partnership deed 

Statutory Board /Local Authority 

  • PAN card 
  • Latest utility bills 
  • Bank account statement 
  • Certificate of registration/incorporation 
  • KYC of all the authorised signatories 
  • A copy of the ministry’s or government authority’s permission 
  • Recent passport-sized photographs 

Registered Societies 

  • Board resolution to open FD 
  • PAN card 
  • KYC of all the authorised signatories 
  • Latest utility bills 
  • Bank account statement 
  • Recent passport-sized photographs 
  • Certificate of registration/incorporation 
  • Articles & memorandum of association 

Trusts 

  • Board resolution to open FD 
  • Copy of trust deed 
  • Registration certificate 
  • Recent passport-sized photographs 

Highest Fixed Deposit Interest Rates

Bank Interest Rates p.a. Senior Citizen Interest Rates p.a.
RBL Bank 3.50% to 8.00% 4.00% to 8.50%
Bandhan Bank 3.00% to 7.85% 3.75% to 8.35%
IndusInd Bank 3.50% to 7.85% 4.25% to 8.25%
YES Bank 3.25% to 7.75% 3.75% to 8.25%
IDFC FIRST Bank 3.00% to 7.75% 3.50% to 8.25%
South Indian Bank 2.90% to 7.30% 3.40% to 7.50%
Punjab National Bank 3.50% to 7.25% 4.00% to 7.75%
Kotak Mahindra Bank 2.75% to 7.25% 3.25% to 7.75%
Karnataka Bank 3.50% to 7.25% 3.50% to 7.75%
Canara Bank 4.00% to 7.25% 4.00% to 7.75%

Types of Fixed Deposits

  • Normal Fixed Deposits
  • Tax-Saving Fixed Deposits
  • Senior Citizen Fixed Deposits
  • NRI Fixed Deposits
  • Cumulative/Non-Cumulative Fixed Deposits
  • Flexi Fixed Deposits

Benefits and Features of FDs

  • Attractive interest rates.
  • Tax saving benefits with tax saving FD plans.
  • Guaranteed returns for longer tenures despite market fluctuations.
  • Loan facility against FD.
  • Credit card against FD.
  • Extra interest benefits are offered for senior citizens 
  • Several tenure options from 7 days to 10 years.
  • Interest payment choices: monthly or quarterly.
  • Premature withdrawals are allowed with penalties.
  • Open an account online or offline with a minimum investment of Rs 1,000.
  • Safe and secure investment options as FD schemes are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Conclusion

In conclusion, opening a Fixed Deposit account is a safe and secure choice that will help you to grow your investments. Follow the steps, choose the right bank, and understand the simple process. By doing so, you can start building a secure financial future with different fixed deposit plans. Take that step today with Wint Wealth for a stable tomorrow.

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