A step-by-step guide to opening a Fixed Deposit

A step-by-step guide to opening a Fixed Deposit
A step-by-step guide to opening a Fixed Deposit. Image source: vecteezy.com

Fixed Deposits are a popular investment for those who want to grow their savings while enjoying assured returns. They are offered by various banks in India and are one of the safest investment options available. When you opt for an FD, you not only get guaranteed returns, but your capital also stays protected.

You can also easily open an FD online using Online Banking platforms. Let us understand FDs better along with the steps to open one.

Overview of an FD

FDs are Term Deposits that let you deposit a sum with a bank for a specific term. The term of the FD may range from a few days to several days, and you can opt for it based on your needs. In return for depositing the funds, your bank offers interest at a guaranteed rate on the sum. The various features and benefits of a Fixed Deposit Account include the following:

  • It lets you save and grow your money for any financial goal.
  • It usually lets you earn interest on your deposited funds at a higher rate than a Regular Savings Account.
  • It offers assured returns as the interest rate of an FD remains the same throughout its tenures.
  • Most banks let you withdraw your FD in case of emergencies.

Steps to open an FD

  • Do your research

When opening an FD, the first step is to research and compare the available options. Different banks offer FDs with varying interest rates, tenure, and other features. Compare the offerings to find the one that suits your financial needs. Consider factors like the bank’s reputation, FD rates offered, terms related to premature withdrawal, and customer service when opening your deposit.

  • Choose your preferred type

Today, banks offer different FDs. These include Regular FDs, Senior Citizen FDs, Tax-Saving FDs, and more. Once you decide on the bank, pick the FD you want based on your needs.

  • Open the deposit

You can visit your preferred bank to open your FD. Alternatively, you can open your FD Account online from your home. To open your deposit from anywhere and anytime, use the Banking app facility. The process is usually paperless and takes little time. To open the FD online, fill out the application form. Carefully select the amount and tenure of your FD based on your needs. You should also add a nominee. 

Once you have filled in the required details, double-check them before submitting. After submitting the application and depositing the amount, you usually receive the receipt or FD certificate. 

Conclusion

As evident, opening an FD is straightforward. You can also easily open it online from anywhere using Online Banking channels. However, before you open it, research, pick a reputed bank, and choose an FD type based on your needs.