How to Invest in Fixed Deposit (FD)?

By Opening an FD Account Offline:

  • Visit your nearest bank or the bank in which you already have a saving account along with valid ID proof like PAN card, AADHAR card, voter ID card, etc.
  • Ask the bank representatives about opening FD account, and collect FD form.
  • Select the investment tenure and also check the applicable interest rates, as interest rates differ as per the investment tenure.
  • Deposit the form and bank will check the details and on verification of details and completing KYC, you can chose either to deposit the amount via cash or cheque at time of depositing FD from or you can direct bank to deduct amount from the bank account already available with them.
  • On competition of formalities, bank will create a FD and will issue a FD certificate which is to be safely kept will the maturity of tenure.

By Opening an FD Account Online:

  • Browse to the web portal or mobile application of the bank partner with which you want to open FD account, now-a-days almost every bank provides the facility of providing FD account opening online.
  • Login with your credentials and navigate to “Open FD
  • Select the best FD plan suitable to you
  • Proceed to video KYC and fill up the required verification details using TPIN or MPIN
  • Your FD will be opened and details shall be communicated on your email and postal address.

(It is important to note that every bank has there own set of online facility and the above steps might differ.)

Fixed Deposit : Features, Benefits and How to Invest

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What is Fixed Deposit (FD)?

A fixed deposit is a type of term deposit that is made by the investor for a fixed time period at applicable FD interest rates and generates interest income. FD investment scheme is considered to be one of the safest modes of investment for any investor who has a preferred low-risk appetite. Under FD, an investor invests a lump sum amount and the principal gets locked up for a fixed period of time. On the maturity of a certain time period, the investor gets the principal along with interest income. The time period for FD investment can either be days or can be a number of years. The interest rate on FD depends upon the years invested and is decided by the financial institution accepting FD and even RBI regularises FD interest rates....

Who Offers Fixed Deposits (FD)?

One of the reason which contributes to the high popularity of FD’s is that they are easy to apply and, are available easily. Fixed deposits are offered by all scheduled commercial banks, NBFCs, HFCs. and, even payments banks like Paytm payment banks and Airtel payment banks offer Fixed Deposit to investors. Private banks can offer better interest rates than public sector banks, but investor should not be attracted to high interest rates without due diligence. It is important for an investor to check the ratings of the financial institution offering FD’s. CRISIL issue ratings for financial institutions which can be used by investor to make a decision whether to invest or not. It is seen that small finance banks are offering better and high interest rates of FD but again investor should pay attention to their ratings....

Features of Fixed Deposits(FD)

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