Steps to Open a Fixed Deposit Account Both Online & Offline
Suppose you have got a certain amount of money in your bank account and want to save it for the long haul. You got a resolution not to touch that money unless you fall into a very critical situation.
Also, you want it to be hassle-free and entirely secure. So, what will you do?
Your solution would be- Fixed Deposits (FDs). In India, FDs are one of the most popular kinds of savings. As the reports suggest, there are more than Rs. 100 lakh crore banks deposits in the country.
So, we can say that an average depositor in India prefers to open a fixed deposit account.
Fixed deposits are also referred to as time deposits or term deposits. Besides mobilizing funds from DD (demand deposits) such as current and savings accounts, banks also prefer to raise funds through fixed deposits. As the word suggests, fixed deposits have a fixed duration.
But before you consider opening a fixed deposits account, you must ponder on a few crucial factors related to the same such as eligibility criteria, minimum fixed deposit amount, tenure, etc.
Let us find what they are.
Factors to Consider While Opening a Fixed Deposit Account
In general, most banks have the same eligibility criteria. Have a look at the table below.
Apart from the ones described in the table, one must also have a sound knowledge of the benefits, taxes, and forms to claim exemption. Such factors have a lasting impact on your bank Fixed Deposits.
Now that you are aware of the criteria, we can move on to the process of opening a fixed deposit account.
Steps to Open a Fixed Deposit Online
The process of opening a fixed deposit online varies from bank to bank but with the slightest change in the steps.
Before we start, let me tell you that this process is applicable to those who have existing savings accounts in that particular bank.
Step 1: Log into your Net-Banking account
Whether you are using HDFC, ICICI, SBI, or any other banks, you have to first log into your online account using your net-banking user ID and password.
Step 2: Choose Open Fixed Deposits (FD)
For ICICI net-banking users, first, click on the Bank Accounts section, then click on the Accounts option and then click on Open Fixed Deposits Now. It is as simple as it sounds.
For SBI users, you will get the Fixed Deposits option on the home page. Simply click on that and click on the option- Open FD.
For HDFC users, click the section ‘Transact’ and choose Open Fixed Deposits.
Similarly, you can open FDs with other banks if you have a savings account with them.
Step 3: Select the Criteria
After you have chosen to open a fixed deposit, you need to select the criteria such as the branch, amount and tenure, nominee name, etc. Once you are done with them, click continue and then confirm.
Step 4: Download the FD receipt
In the end, you can instantly download the receipt of your fixed deposit for future references.
How to Open Fixed Deposits at the Branch?
You can open a fixed deposit account in the same you open a savings account. You can simply approach a branch of the bank and open a fixed deposit account after selecting all the criteria and fulfilling all the details required.
Nowadays, banks provide the flexibility of automatically transferring money from savings to FD accounts above a certain threshold limit as prescribed by you. This is known as the auto-sweep facility.
The key factor to choose while opening an FD account is tenure. To know the interest rate, you must ask your bank.
The key factor to pick in a fixed deposit account is tenure. The interest rate is fixed by the specific bank.
You might be also interested in knowing- How to Open a Demat Account?
How to Open a Fixed Deposit If I Don’t Have a Savings Account?
In case you don’t have an account in the bank where you wish to open a fixed deposit (FD), then all you need to do is to submit a few documents such as your photo ID proof, address proof, mobile number, etc. You must complete the KYC (Know-Your-Customer) process required by the bank.
You are supposed to submit these document and ID proofs with an application form accurately filled up and signed by you.
How Many FD Accounts Can You Open?
You can open or hold as many fixed deposit accounts as you want.
So, it was quite simple.
Then what are you waiting for?
Go, and get your fixed deposits opened now!
In case you have any queries related to fixed deposit account opening, do let us know in the comment section.
Until then, happy learning and happy investing!
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