Fixed deposit is one of the most-opted investment options. The major advantage of investing in a Fixed Deposit, commonly referred as FD, is that it keeps your money safe and yield assured returns as well. Banks in India offer many types of FDs which come with different tenure and interest rates. If you want to invest in an FD, below are the guidelines to fill out the FD form at banks.
Guidelines to fill out bank fixed deposit form
- Visit your nearest bank, ask for an FD form and start by ticking the option whether you are an existing customer at the bank or not.
- The form should include all accurate details such as your name, email address, telephone number, mobile number and date of birth.
- For joint FD account, the name, email, telephone number, mobile number and date of birth of the second member should also be filled in the form.
- Once these details are filled correctly, enter your current address in the space provided along with the amount and interest payment options followed by a confirmation and signature.
Note: – The FD application form is to be filled in BLOCK LETTERS.
To open fixed deposit account with a bank, one should first compare interest rates offered by different banks to check and avail best FD rates available in India. After which one can either log on to the official website of the respective bank or visit the nearest bank branch.
Steps to open FD account online
- Login or register on the official website of the respective bank.
- Go to the “Fixed Deposit” option.
- Input all the details required in the form.
- Verify the details and click on “Confirm”.
- Soon, a confirmation message will appear on your screen.
Steps to open FD account offline
One can also open a fixed deposit at banks offline. The steps for the same are listed below:-
- Compare FD interest rates provided by several banks and financial institutions to get the best bank FD rates.
- After thorough research, visit the respective bank branch.
- Get the FD application and fill it with all the required details.
- Submit the form to the bank with supporting documents.
- Deposit the money.
- Collect the FD receipt.
- Any individual (salaried, non-salaried and entrepreneur) can open a fixed deposit account provided they can easily meet the criteria.
- FD can also be opened in the name of minors but along with a parent or guardian who can look after their FD account until the time they turn 18 years old.
- Eligibility criteria for opening an FD account may differ from one bank to another.
List of Documents required for opening an FD
To open a FD account, applicants are required to submit identity proofs and an address proofs. Documents which serve as a valid address and identity proof are listed below:-
- For address proof one can submit a copy of passport, bank statement with a cheque of not more than 3 months, telephone bill, electricity bill, any certificate or ID issued by the post office.
- For identity proof, one can submit documents such as a copy of passport, Aadhaar card, driving license, PAN card, Voter ID card, senior citizen ID card, ration card that has an applicant’s photograph, etc.
Key things to note
- Some banks only allow existing customers to open an FD in that bank. Hence, it is advised to confirm the same with the bank you want to open an FD with, in case you are opening an FD with a new bank.
- A copy of PAN card, Aadhaar card and a mobile number is essential to open an FD without which a fixed deposit cannot be opened at any bank in India.
- One can close an FD anytime using the internet or mobile banking. Pre-mature closure of FD is also possible. Banks might charge you a premature withdrawal penalty.
Fixed deposit is the safest investment option that enables you to earn a fixed rate of interest for the entire investment period. Most suitable for retirees and housewives, the FDs promise assured returns. It is a way better option than parking your money in the savings account. Furthermore, the interest rates on fixed deposits vary across banks in India and also on the maturity period. So, it is always advisable to compare all bank FD rates to know which bank provides best bank FD rates in India.
Every bank in the country offers different interest rates on FDs. Banks also offer special fixed deposit interest rates for senior citizens. The interest paid on a fixed deposit is either monthly or annually according to the choice of the investor. So, for example, if you invest Rs. 3 lakh in an FD which pays 8% interest, in that case, the interest you earn monthly and quarterly will be Rs. 2000/- and Rs 6000/- respectively.
To calculate the fixed deposit interest rates, an FD calculator can be put best to use. It is an online tool that assists you in finding the maturity amount and the interest you earned from fixed deposits. There are many official bank websites and web portals which are integrated with FD calculators that assist individuals in finding the interest rates on fixed deposits. One case use FD calculator online to keep the following information handy:-
- How much you want to invest in FD.
- The deposit term and the rate of interest provided by the bank on the deposit term.
- It can also be used to determine whether the interest in FD is compounded yearly/quarterly/monthly/half-yearly. (Getting this number right is particularly important because it helps you understand the number of times the interest is compounded Monthly – 12, half-yearly -2, yearly- 1 and quarterly-4).
The major advantage of using FD calculator is that it is readily available and is completely free to use.