Term deposits, or fixed deposits, are one of the most preferred savings and investment options because of their risk-free, guaranteed returns. One term that is commonly used while discussing term deposits is Term Deposit Receipt (TDR).
Before you learn more about the term deposit receipt, it is important for you to know about term deposits.
A term deposit is a reliable investment tool offered by financial institutions at a higher rate of interest than a savings account. When you deposit a sum of money in a term deposit, you choose to keep the money deposited with the financial institution for a fixed tenor. You earn interest on this amount at a fixed percentage for the mentioned duration.
A Term Deposit Receipt (TDR) is a document that is provided to you by financial institutions when you invest in a term deposit with them. This document contains the following details:
Your name
Age
Address
Deposit amount
Investment tenor
Applicable interest rate on the deposit
Interest you get on FD maturity
Nominee name
Date of booking the deposit
Maturity date of your deposit
FD account number
Instructions related to the deposit
A term deposit receipt is an important document that you must keep safely, as it is an acknowledgement and proof of your ownership of the term deposit.
When you book a term deposit with any financial institution via online or offline mode, you will be provided with a term deposit receipt. It is an important document that needs to be kept securely.
It is required when you have to renew your term deposit. Once your deposit matures, in case of an offline FD, you have to surrender the term deposit receipt for FD renewal. This way, you will be issued a new term deposit receipt when your deposit gets renewed for a new tenor.
If you are facing a financial crunch, you may not want to withdraw your FD before maturity. In this case, you can avail a loan against your FD at comparatively lower interest rates than that of a personal loan.
You have to submit your term deposit receipt to the issuer and the same will be kept as a surety. Upon loan repayment, your term deposit receipt will be returned back to you.
You may also need to submit a term deposit receipt in case of a premature withdrawal. If you want to prematurely withdraw your FD before maturity, a term deposit receipt is essential to prove your ownership.
When the issuer gives you a term deposit receipt, there are a few factors you need to check for. A few of them are mentioned below:
Check if the applicable rate of interest and tenor of the deposit are mentioned accurately.
Pay attention to the renewal dates, if you have opted for the auto renewal mode
Understand the charges and penalties you have to bear in case of premature withdrawal
Make sure the nominee details are filled in properly
These are a few things to note once you receive your term deposit receipt. Now that you are familiar with the term deposit receipt, here are a few terminologies related to fixed deposits you should be aware of.
Yes, a term deposit receipt has all the details of the nominees included in the scheme.
Yes, a term deposit receipt contains the information regarding the tax that may be deducted from your returns.
You have to submit a written application to the issuer mentioning the details of your term deposit. You may also apply for a duplicate term deposit receipt after submitting required documents as proof. You may contact the customer care team of your issuer to get the right assistance.
Yes, many financial institutions provide you with the option to invest in a term deposit through their online portals
Residents, minors (through their guardian), Hindu Undivided Families (HUF), family trusts, group companies, limited companies, partnership firms, sole traders, associations, clubs and societies can invest in a term deposit.