Fixed Deposits (FDs) are gathering traction among investors more than ever as the share market faces a volatile period in the coming months due to various global economic factors. FDs have always been popular in India, especially among those looking for a secured investment avenue.
Moreover, if you want to open a fixed deposit account today, the options are plenty, and you can choose from various options offered by various financial institutions. So, understand the process of doing it and then start your investment journey.
How to start a fixed deposit account?
There are two ways of investing in an FD, online and offline. So, let’s take a look at these processes –
Offline process
To begin the process, you need to get the form for opening a fixed deposit account by going to the branch of your preferred bank. You can even download it directly from the website of the institution in question. After that, fill up the form with all the requested information, and then take photocopies of your PAN card with you while going to the branch.
Talk to the employees at the bank, show them the form you filled out as well as the documents and the photocopies that you brought with you. A check will be made of all the documents to make sure they are correct, along with the form that you filled out.
Following the checks, you must deposit the total amount you will use for the FD. When you have finished depositing your funds, you have completed your obligations for this transaction.
Online using the financial institution’s official website
- Visit your bank’s or financial institution’s banking website.
- Enter your username and password to log in to the site, if you don’t have one, you can create it.
- Look for an option that says “Open a Fixed Deposit Account” or “Open Deposit Account” or something similar.
- Determine the total investment and tenure.
- Complete the remaining fields, including the nominee’s name, address, and linked bank account number.
- Specify in your instructions a recurring procedure to have the investment money deducted.
- Give your permission and verify that the funds have been moved successfully from your savings account to your FD account.
Online using the financial institution’s mobile app
- Download the mobile application for your bank or financial institution.
- Log in by utilising the appropriate credentials.
- Look for an option that says “Open a Fixed Deposit Account” or “Open Deposit Account” or something similar.
- Determine the sum and the length of the contract.
- Complete the remaining details with your own words.
- Give permission to transfer the money from your savings account to your FD account.
Benefits of Fixed Deposits in India?
Here are some benefits of fixed deposits that you should know about to make a smart investment choice.
Guaranteed returns
One of the best things about fixed deposits is that they offer guaranteed returns in the safest way possible.
Tax breaks for fixed deposit
Depending on the type of account you choose, FDs may also help you save money on taxes.
Senior citizen benefits
Senior citizens with FDs get many benefits, such as higher interest rates and a higher limit for TDS deductions.
Loan against FD
The amount of loan you can get is set as a percentage of the amount in your FD account, and it can be anywhere from 60-90% of the money in your FD account.
A simple way to invest
Fixed deposits are easy to understand, even if you are just starting in the world of personal finance.
Flexible Tenure
You can choose from many different deposit terms, lasting anywhere from 7 days to 10 years or more.
You may also love to read about – Fixed deposit withdrawal before maturity
Parting thoughts
Hopefully, now you have more of an idea of how to open a fixed deposit and what benefits you will get. So, if you are considering this investment instrument, look at the fixed deposit options available and then decide.
