How To Open A Fixed Deposit Account

Time deposits or Term deposits are most commonly known as fixed deposits. Apart from mobilising funds from demand deposits like savings and current accounts, banks also resort to fixed deposits to raise funds. Fixed deposit, like the word suggests, have a fixed duration.

How to Open a Fixed Deposit Account?

Now that we know what a fixed deposit (FD) is, let us see how we can open a fixed deposit account.

Steps to Open an FD Account

One can open a fixed deposit account by:

• visiting the nearest bank branch where they want to open their FD account
• through net banking or
• by using the mobile app of the bank where they are willing to open their FD account

If one already has a savings bank account, then one can easily open a fixed deposit through net banking or by physically visiting the nearest bank branch of the bank in which they have the savings account.

How to Open an FD Account by Visiting a Bank?

If one already has a savings bank account with the bank they want to open their FD with, then one has to download the FD application form from the bank's website. One can also fill out the application form by physically visiting the bank branch.

After procuring the application form, one must follow these steps:

• Fill in the application for a fixed deposit with relevant and correct details. Write down the amount one wants to invest in and mention the tenure. 
• Submit the duly filled-in application form at the bank, along with the required documents. 
• Provide cash/cheque for the amount one would like to invest in FD.
• The application will then be processed, and the FD account will be opened by the concerned bank/financial institution.

How to Open a Fixed Deposit Account through Net Banking?

The procedures for opening an FD account differ from one bank to another. However, the general steps to open an FD account through net banking are as follows:

• Visit the official website of the Bank/NBFC
• Register with a new ID or log in using the existing credentials
• Select the option to 'Open a fixed deposit account'
• Fill in the required details, such as the investment amount, tenure, nominee details, etc.
• Review all the details to ensure they are correct and then confirm them to proceed
• Pay through net banking
• Download the receipt for future reference

How to Open a Fixed Deposit Account through an App?

The steps for opening an FD account through a mobile banking app will vary from Bank to Bank. This is because each bank will use a unique application that will differ from those of other banks. There are some generic steps that one would need to follow, whichever mobile application one chooses.

The general steps to open an FD account via an app are as follows:

• Download the bank's mobile app on which one wants to open an FD account
• Login using credentials
• Look for 'open a fixed deposit account' or 'open deposit account' or similar sounding option 
• Choose the amount and the maturity period, and also fill in the rest of the details
• Click the 'Proceed’ button. The invested amount will then be debited from one's savings account, and an FD account will be created instantly.
• Download the web receipt for future reference

Conclusion

Fixed Deposits earn higher interest than a Savings Account because the former gives them leg room to lend to people who need the money for roughly the same time limit. A one-year fixed deposit in a bank can allow the bank to lend money to a person who requires a personal loan for one-year period.

Frequently Asked Questions (FAQs)

1. Who can open fixed deposit account?

• An individual in his own name.
• More than one individual in joint name.
• Minor of age 10 and above on terms laid down by the bank. Accounts can also be opened in the name of minor with their father/mother, as guardian. Clubs, associations, Educational Institutions, Partnerships, and joint stock companies, provided they are registered, and bank is satisfied that the account is opened for genuine savings purpose.
• An Indian citizen of 18 years or older can open an FD account.

2. Can I open multiple FD accounts in same bank?

Yes, one can open multiple FD accounts at the same bank. There is no limit to the number of FDs you can open.

3.Can minor open fixed deposit?

Yes, a minor can open a fixed deposit account.

4. Can I open an FD without a bank account?

Yes, one can invest in FDs without opening a bank account.