A fixed deposit, or FD, is an investment avenue that numerous financial institutions offer. FDs are considered to be one of the safest options due to the stability in returns and the safety of corpus. There are various types of fixed deposits, which you can choose from based on your goals.

 

Commonly offered fixed deposit types include the tax-saving FD, senior citizen FD, non-cumulative and cumulative FD, and flexi FD. You can select the type of FD and open a fixed deposit account online or offline.

 

Thanks to digitisation, the procedure of opening a fixed deposit account is easy with minimal paperwork. This enables you to open an FD account quickly and start growing your wealth. 

 

While the procedure and formalities for opening a fixed deposit account differ for every FD issuer, there are some general steps. Read on to know how to open a fixed deposit account online and offline.

How to Open an FD Online

With the advancements in technology, every service is available online, including opening a fixed deposit account. Booking an FD online is a hassle-free procedure and saves time. 

 

On Bajaj Markets, you can complete the procedure of opening a fixed deposit account online by following these quick and simple steps.

  • Step 1: Visit the official Bajaj Markets website

  • Step 2: Navigate to the "Fixed Deposit" page and Click on ‘Invest Now’

  • Step 3: Enter details like your mobile number, PIN code and date of birth and click on ‘Get OTP’

  • Step 4: Fill in the investment details such as the amount, tenor, interest payout 

  • Step 5: Complete KYC with required documents such as PAN and Aadhaar (existing customers can directly enter nominee details)

  • Step 6: Choose payment mode and complete the transaction (use net banking for investments above ₹1 Lakh)

  • Step 7: Save the confirmation receipt and FD certificate 

How to Book an FD Offline

You can also choose to complete the fixed deposit investment procedure offline. You can get support from an executive to enjoy a smooth and seamless application procedure. Follow the steps outlined below to complete the process of open a fixed deposit account offline:

Existing Account

In case you already have an account with the institution, follow these steps:

  • Visit the nearest branch of the institution

  • Enquire about the fixed deposit application form

  • Fill out the form with all required details and submit it

  • The concerned official will guide you through the procedure

     

New Account

If you aren’t an existing customer, the procedure for opening a fixed deposit account is as follows:

  • Visit the nearest branch of the institution

  • Enquire about the fixed deposit application form

  • Fill out the form with the required details

  • Submit the required documents for KYC verification

  • The concerned official will guide you through the next step

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Eligibility Criteria to Open an FD Account

Knowing the eligibility criteria is essential to understanding how to open a fixed deposit account. This helps ensure that you qualify for an FD investment and that the process is seamless. 

Generally, issuers have a basic set of eligibility criteria that lists all the entities eligible to open an FD account. Given below are some of the come entities that can open a fixed deposit account with a majority of the issuers: 

 

  • Indian citizens residing in India

  • Sole proprietorships

  • Hindu Undivided Family (HUF)

  • Companies

  • Partnership firms

  • Clubs

  • Associations

  • Family trusts

  • Societies

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Documents Required to Open an FD Account

Along with knowing the eligibility criteria, knowing the documents needed is equally vital in ensuring that you get to start your investment seamlessly. Generally, FD issuers require you to submit the following documents to complete the fixed deposit investment procedure:

  • PAN Card

  • KYC Documents

  • Photographs

It is essential to keep in mind that if you want to invest as other than an individual, you will have to submit additional documents. This may include registration certificates, deeds, memorandum of association, and board resolution.

 

The required documents may differ depending on the institution you invest with. You can confirm the same and keep the documents ready before starting the procedure of opening a fixed deposit account.

Benefits of Opening FD Account for Senior Citizens

Multiple Payout Options

Fixed deposits have different payout options so you can receive your interest earnings at your desired frequency. This allows you to get a steady inflow of cash. You can receive the payout monthly, quarterly, half-annually, or annually. 

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This steady cash flow helps you meet your post-retirement expenses with ease. 

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Higher Interest Rate

FD issuers generally offer a higher interest rate to senior citizen investors. A higher interest rate means increased returns, giving you a chance to make the most of your investment. Generally, the in Read Moreterest rates are higher by up to 0.50% for seniors. Read Less

Tax Benefits

A key tax benefit of investing in fixed deposits as a senior citizen is that the TDS limit is higher by ₹10,000. This means that your interest earnings will not be subject to TDS deductions if the year Read Morely interest is under ₹50,000. Read Less

Simple Procedure

Whether you choose to invest online or offline, the procedure for opening a fixed deposit account is easy. Both methods have simple steps and minimal requirements. This ensures that you can complete th Read Moree process without any hassles. Read Less

Safety of Corpus

While FDs give you a regular inflow of cash, they also keep your invested amount secure. Company FDs are generally given a safety rating, determining your investment's safety. 

 

Check this before investing and earn good returns while keeping your original corpus safe.

Loan for Emergency Needs

Most FD issuers offer a loan against your fixed deposit. This allows you to meet your emergency financing requirements without breaking your FD, which can also attract a penalty. 

 

Depending on the issuer, the loan amount can go up to 95% of your investment. Use this for any reason, be it a medical need or home repairs. 

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As you can see, the procedure and formalities to open a fixed deposit account are simple and can be completed digitally in just a few clicks. On Bajaj Markets, you can choose from a number of FDs and invest with just ₹5,000.

 

Once you choose your FD, you can enjoy returns with interest rates going up to 8.60%. So, get started today! 

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Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.

FAQs on How to Open a Fixed Deposit Account

Do you need a bank account to open fixed deposits?

No, you can open a fixed deposit account even if you do not have an account with the issuer. You can do so by submitting some documents required to complete your KYC verification procedure. Once you complete the KYC, you can submit a completed application form.

 

Is it possible to have a joint fixed deposit account?

Yes, it is possible to have a joint fixed deposit account. A fixed deposit can have up to three depositor names. However, the main power of the investment lies with the first depositor.

 

What is the role of nomination in fixed deposits?

The nomination facility in the procedure for opening a fixed deposit allows the investor to nominate any person who will receive the fixed deposit funds in case of the death or absence of the primary depositor.

 

Are online fixed deposits secure to invest in?

Yes, your investment is secure even if you complete the fixed deposit investment procedure online.

Can I get my FD interest paid out on a monthly basis?

Yes, a majority of the issuers offer multiple payout options for the interest you earn. Be sure to check the payout before investing and choose the monthly payout option when you open a fixed deposit account online.

 

Can a minor's name be used to make an FD?

Yes, you can open a fixed deposit online and offline in the name of a minor.

 

Can I open a fixed deposit online?

Yes, you can complete the procedure and formalities for opening a fixed deposit account online at Bajaj Markets platform.

Which bank is best for opening an FD account?

The best issuer depends on your investment needs. Generally, you should choose an issuer offering high FD rates, flexible tenor, and other benefits. 

 

Currently, some of the top FDs that offer high interest rates are Bajaj Finance FD, PNB Housing Finance FD, Mahindra Finance FD, and LIC Housing Finance FD.

 

How do I open an FD account?

You can complete the procedure to open a fixed deposit account offline or online. To do it online, visit the issuer’s website, fill out the application form, and submit the required documents. For an offline process, visit the issuer’s branch/ office and talk to a representative.

 

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