Fixed deposits (FD) can be essential to your investment portfolio. The rate interest on fixed deposit schemes is comparatively higher to give stable returns on your money over the investment’s life. The funds an investor puts in a fixed deposit scheme are protected from market irregularities, economic instabilities, or political changes in the country.
An investor who does not have the time or knowledge to keep a constant watch on his investment can open FD account online or offline and relax.
Let us find out how you can open an FD account online in India.
Steps to Start an Online Fixed Deposit Scheme
In this digital era, no one has the time and patience to visit a bank branch. Keeping this in mind, most leading banks in the country have brought banking to the customers’ fingertips. Banks give investors the comfort of investing their money in various schemes from the comfort of their homes. These steps will help open an online fixed deposit account:
Step 1: Before opening a fixed deposit account, thorough research about the rate interest on fixed deposit schemes with various banks is advisable. Leading banks in the country offer interest returns as high as 7.25% per annum on fixed deposit schemes. A little effort can help you choose the most suitable and profitable FD plan for you.
Step 2: Once you have decided on the bank of your choice, go to its official website. Sign up and log in with your credentials.
Step 3: Banks offer fixed deposit schemes under various categories, like Flexi Sure FDs, Regular FDs, Tax-saving FDs, Senior Citizen FDs, Super Senior Citizen FDs, Recurring Deposits, and NRI FDs. Choose the scheme that suits your needs.
Step 4: Fill out the online fixed deposit application form and give all the necessary details, such as the FD amount, the tenure of investment, and the nominee’s name.
Step 5: Submit all the documents the bank requires to proceed with your FD application.
Step 6: Go through the Terms and Conditions and give your acknowledgment after rechecking all the details you have provided.
Step 7: Note the transaction details for future reference and communication with the bank.
To make the investment procedure simple for investors, some reputed banks offer the facility of receiving a call back from the bank. You can simply log in to the bank’s website and request a bank representative to call you on the number you provide. You can receive the call immediately or have it scheduled later.
With these easy steps, you can invest in a fixed deposit scheme with a bank of your choice.
You may also read – How do fixed deposits work
Documents Required to Open an Online FD Account
When applying for a fixed deposit scheme, it is advisable to keep your documents ready. It will help in speeding up the account opening process. The documents required to open a fixed deposit online are easy to collect. The investor needs identity and address proof to open a fixed deposit account. Here are the documents you can submit as identity and address proofs.
Documents required for identity proof to start a fixed deposit scheme:
● Passport
● Voter ID card
● PAN (Permanent Account Number) card
● Driving licence
● Photo ration card
● Government ID card
● Senior citizen ID card (For Senior Citizen and Super Senior Citizen Fixed Deposit schemes)
Documents required for Address proof to start a fixed deposit scheme:
● Passport
● Electricity bill
● Telephone bill
● Certificate issued by Post office
● Bank statement with cheque
The Final Word
Fixed deposit schemes are an investor’s most straightforward and uncomplicated mode of investment. They offer you a host of benefits, like high-interest returns, stable and assured returns that stay unchanged till the investment matures, the opportunity to earn higher returns through the compounding mode of investment, the facility of loans against fixed deposit, and predetermined returns on the invested money.
