Fixed Deposit Receipt (FDR)

Posted in Investment Tips By Sajhyadri Chattopadhyay-

986 Views

135

A Fixed Deposit Receipt (FDR) is an acknowledgement and proof of ownership that banks and financial institutions issue when you book a fixed deposit with them. It serves as evidence of your investment, containing key details about the deposit.

It includes the deposit amount, interest rate, and maturity date. It is helpful for tax filing, claiming tax benefits, and keeping track of your investment.

Components of a Fixed Deposit Receipt

Knowing what is included in the FD receipt can help you better understand this document. Here are the various components of a standard fixed deposit receipt:

Investor Details	Complete details of the account holder, including full name and permanent address
Account Details	Unique identifiers such as Customer ID and Account Number assigned by the bank/NBFC when opening an FD account
Deposit Details	Fixed deposit details, such as: The type of FD booked - Cumulative or Non-cumulative Principal amount FD tenure Date of initiation Maturity date
Rate of Interest and Maturity Amount	Details on the interest rate applicable and the total amount receivable at the end of the tenure
Auto-renewal or Auto-closure	Details about renewal and closure of your FD on maturity: Auto-renewal, in case you have not explicitly mentioned otherwise Auto-closure, in case you have opted for the same upon maturity
Premature Withdrawal	Clear presentation of the bank's terms and conditions regarding penalties for premature withdrawal
Nomination Details	Information regarding the nominee you have selected

Importance of a Fixed Deposit Receipt

This crucial document plays a significant role in financial transactions and legal matters. Here are some situations where a fixed deposit receipt can be useful:

In Case of Premature Withdrawal

Your FD receipt serves as proof of ownership of a particular FD investment. Having it is vital during premature withdrawals or when closing the FD account at maturity.

In Case of Renewals

For FD renewal, you will be required to use FDR as proof of ownership. You will then surrender the current receipt for a new FD receipt that is created as per the specifications.

In Case of Loan Against FD

Various banks and NBFCs allow you to take loans against your FD. You can request up to 90% of the deposit amount. In this case, you will be required to submit the FD receipt to the lender.

Steps to Download Your Fixed Deposit Receipt

While the process for downloading your FDR may vary with different banks, here are the general steps you need to follow:

Go to the official website of the bank/NBFC or access their mobile app.
Look for the 'Deposits' or 'Fixed Deposits' section.
Choose the specific FD account for which you need the receipt.
Find an option to view or download the FDR and click on it.
Save it on your device or print it for future reference.

Reasons to Check the Fixed Deposit Receipt

Checking your fixed deposit receipt is essential for several reasons:

Investment Details

You can confirm the deposited amount, interest rate, and tenure details through your receipt. The accuracy in the FD receipt ensures your returns align with the agreed terms.

Maturity Date

Your fixed deposit receipt also helps track maturity dates. Regular checks empower you to plan and manage finances efficiently, avoiding surprises upon maturity.

Personal Information

Use the FDR to cross-verify personal information recorded by the bank or NBFC. Timely detection of errors ensures correct representation and prevents complications later.

Difference Between FD Receipt and FD Advice

While both these documents relate to your investment in a fixed deposit, they serve distinct purposes. Refer to the following table to know how an FD Advice and FD Receipt differ:

Basis of Difference	FD Advice	FD Receipt
Meaning	An acknowledgement or intimation of the fixed deposit	A formal document confirming the opening of a fixed deposit
Issuing Entity	Financial institution that holds the FD account	Financial institution that holds the FD account
Purpose	Provides basic details but not considered a formal proof	Serves as legal proof of investment and ownership
Components	Basic information about the fixed deposit	Comprehensive details such as the amount, interest rate, maturity date, etc.

Conclusion

It is crucial to obtain your FD receipt to ensure you have proof of your investment and access to all the details about your investment. To plan your investment efficiently and forecast your returns, be sure to use an FD calculator.

You can open a Fixed Deposit with various financial institutions through Bajaj Markets. By applying here, you can enjoy benefits like competitive interest rates, flexible investment durations, and more.

You can also compare rates across banks and NBFCs and take the best decision to grow your savings. The easy online process also ensures that you can book an FD with minimal formalities.

Get up to 9.40% p.a. interest, inclusive of additional benefit of 0.50% p.a. for senior citizens and 0.10% p.a. for women Open an FD

Can I trade or transfer an FDR to another person?

No, you cannot trade or transfer a Fixed Deposit Receipt (FDR) to another person. However, you have the option to transfer the funds to another account during premature withdrawal or at maturity of the investment.

Can I withdraw money before the maturity date of FDR?

An FDR is just a receipt of your fixed deposit investment, it is not the actual investment avenue. You can withdraw money from a fixed deposit before the maturity date as per the policies of the bank/NBFC.

Remember to check the important conditions and penalties associated with the premature withdrawal facility.

Are FDRs insured against losses?

An FDR is not an investment avenue; it is just a document that serves as proof of investment and provides details about your FD. Therefore, it does not have this feature.

Is there a way to identify a fake Fixed Deposit Receipt?

To ensure the receipt is authentic, you can see if it follows the usual fixed deposit receipt format. More importantly, get in touch with the customer care team of the bank to confirm the details.

What is the process to get a fixed deposit receipt back?

If you lose a fixed deposit receipt, you can obtain a duplicate by logging in your online account. If this is not possible, you may need to submit a written request to the bank explaining the circumstances. Note that some banks may charge a fee to issue a duplicate receipt.