What is a Fixed Deposit Receipt?

A fixed deposit is an ideal investment instrument for many, especially if you want to invest in a low-risk instrument and earn stable returns. Furthermore, in the last few years, the process of booking an FD has gotten simpler. 

You can simply visit the issuer’s website and follow the steps mentioned or visit their branch to get started. Like other investments, fixed deposits also come with an acknowledgement document. 

This is known as fixed deposit receipt and is issued once you have booked your FD. Given that it is your proof of investment, it is an important document you should know about. Read on to learn more about a fixed deposit receipt, its components, importance, and more. 

Overview

The FD issuer will automatically issue a fixed deposit receipt once you complete the investment process. This document is an acknowledgement and ownership proof of the investment. It contains important details about you and your investment with the issuer. As a result, it is important that you keep your fixed deposit receipt safe and secure. 

However, in case you have lost the receipt, you can contact the issuers and know the process to avail a duplicate fixed deposit receipt. Generally, you have to submit a written request to the issuer and other documents, if requested. In some cases, you may be charged a certain amount, however this depends on the issuer.

Components of a Fixed Deposit Receipt

Knowing what is included in the receipt can help you better understand this document. Here is a standard fixed deposit receipt format regarding the information it contains:

What is the Importance and Use of a Fixed Deposit Receipt?

Apart from being an acknowledgement of your investment and proof of ownership, there are many features of a fixed deposit receipt that add to its importance. In case you want to make a premature withdrawal on your FD, you will have to furnish the proof of ownership, which can be done with the receipt. 

Similarly, if you want to avail a loan against your FD, the issuer will ask for the receipt to keep as lien until the time you repay the loan. The receipt will be re-issued to you with updated details after you repay the loan amount completely. 

Apart from the above, the fixed deposit receipt is an important document you will have to submit at the renewal of your investment. The issuer will ask you to surrender the current receipt and issue a new one once you complete the renewal process.

What to Check in a Fixed Deposit Receipt?

Ensuring that your fixed deposit receipt contains accurate information is crucial. It can help you avoid any hurdles that may arise from mismatches or inaccuracy in investor and investment information. Here’s the information you should check in your term deposit receipt. 

• Investment details

Check the investment amount, tenor, and interest rate of your fixed deposit. This information is important and ensures that there are no errors when receiving payouts. 

• Maturity details

You need to ensure that the maturity tenor and amount is as per the terms of your FD. This way you can plan your goals accordingly and ensure that you can access the funds without a premature withdrawal.

• Auto-renewal or closure

Whether you want to re-invest your maturity amount and get it transferred to your bank account can be decided at the time of investing. If you have opted for either auto-renewal or closure, it will be mentioned on the receipt. Ensuring accuracy in this can help you avoid hassles at the end of your investment tenor.

• Nominee details

A nominee is the person you choose as the recipient of the maturity proceeds in case of your demise. Your nominee’s details will be mentioned on the FD receipt and making sure this is accurate is key. Accurate information can ensure that the transfer to your nominee takes place seamlessly. 

• Penalties and Charges

Issuers charge a penalty if you withdraw prematurely, which will be mentioned in the fixed deposit receipt. Having this information at hand can help you avoid being blindsided by hefty charges, should you wish to make a premature withdrawal. 

Think of the FD receipt as any other asset-ownership documentation, and ensure that you get it after you have invested your money. Whether you invest in an FD available on Bajaj Markets  or elsewhere, remember to request for it after you complete the process.