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Are fixed deposit ownerships transferable?

By Finserv MARKETS - Aug 9,2019
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Are fixed deposit ownerships transferable

Fixed deposits have always been considered as safe investment options by investors who are conservative regarding the risks they are willing to take with their capital. This is because the return on investment is assured according to a predetermined rate of interest which does not change throughout the period of the term.

Fixed deposits have renewed their popularity with the younger generation too, with their options for online investment which allow for seamless and transparent processing. Fixed deposits, available on Finserv MARKETS, allow for online applications as well as submission of documents; which ensures a fast track process for investing in fixed deposits and earning a return on investment.

While fixed deposits are for a definite time period, it is possible to close them in advance to their maturity date. Once the maturity date has passed, the fixed deposit is usually credited into the bank savings account specified. Another possibility when no action is taken involves auto-renewal of the deposit for either a year or for the same time period that the previously fixed deposit was determined for.

Fixed deposits can be closed earlier than the term they are originally supposed to be for. However, in such cases, the interest rate is revised and even a penalty may have to be paid. The interest rate will be applicable for the tenure during which the deposit was with the bank and then a penalty may be levied. Fixed deposits are a safe investment option since they allow for individuals to access easy liquidity by closing the deposit. This can be used either for the personal use of the funds in case of financial emergencies or for reinvesting again.

Read on to learn more about the different kinds of closures available for a fixed deposit:

1. Partial closure:

After the part withdrawal, the deposit amount remaining in the fixed deposit will attract the interest rate as the rate applicable for the amount remaining, for the original tenure, as applicable on the date of the deposit’s opening.

2. Full closure and reinvestment into new fixed deposit:

Banks intimate investors at the time of them making the deposit regarding the penal rate of interest that will be charged in the event of them closing the deposit ahead of its maturity date. The interest paid to the investor will be only limited to the period the deposit has remained with the bank.
The new fixed deposit which is to be created will be in accordance with the interest rate prevailing in the market at that time.

With online investment now a norm in terms of opening fixed deposits, it is possible to close these deposits online as well. With fixed deposits, available on Finserv MARKETS, it is a simple process to apply for a fixed deposit, upload the required KYC documents and keep an eye on the investment digitally. A fixed deposit ensures that return to investment stays intact, regardless of whether the deposit has been made online or offline.

Operating a fixed deposit offline requires the investor to visit the bank branch and submit the fixed deposit certificate, in order to facilitate the transfer or closing down of the account. Once the fixed deposit is closed, you can choose to transfer it to a bank account of your choice; whether within the same bank or another. However, since closing the deposit would require payment of a penalty, it makes sense to transfer the deposit only if the interest rate at the bank you are shifting it too offers a much higher return on investment. If not, keeping your fixed deposit intact at the first bank makes more sense. Since these terms differ from bank to bank, it is important to discuss your options with your banker before taking a decision. These terms are also updated from time to time, so it’s important to stay updated. This is where online investments have an upper hand since it’s much easier for the customer to stay updated on the status of their fixed deposit and to learn about any changes to bank policy without actually visiting the branch.

Investing in a fixed deposit, on Finserv MARKETS, allows investors to track their returns from anywhere at any time at all. Such a provision will allow you to easily compare your existing returns with any potential returns on investment you could be earning by transferring your fixed deposit to a different bank. The eligibility for availing a fixed deposit through Finserv MARKETS is very relaxed as well. Any individual Indian citizen, HUF, sole proprietors, partnership firm, company, club, society or association, and even family trusts can easily start a fixed deposit with Finserv MARKETS, and earn return on investments at high rates of 8.95%. While fixed deposits have always been considered a safe investment option, they are safer than ever with Finserv MARKETS.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522