How To Start A Fixed Deposit?

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 deposit account, you must ponder on a few crucial factors related to the same such as eligibility criteria, minimum fixed deposit amount, tenure, etc. 

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 any bank, you have to first log into your online account using your net-banking user ID and password.

Step 2: Choose Open Fixed Deposits (FD)

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.

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 the same way 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.

Conclusion

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.

Also read: 

Term Insurance Or FD, Which Is A Better Option?

5 Best Long Term Investment Options In India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.