Minimum Amount Required for Fixed Deposits

The minimum amount required for an FD varies among banks and NBFCs. It is the minimum amount of money that you need to deposit to open an FD account.

 

For instance, some banks may require a minimum fixed deposit amount of ₹5,000, while others may allow you to start an FD with just ₹1,000. Similarly, NBFCs also have their own minimum deposit requirements, which can be as low as ₹1,000 or as high as ₹25,000. 

 

It is important to note that these figures are indicative and may vary based on the bank’s or NBFC’s policies.

Here is a table showing the minimum FD amount required to open a fixed deposit at the below banks and NBFCs: 

The minimum deposit amount for fixed deposits depends on various factors, which include:

• Type of Account

The category of account significantly impacts the FD minimum amount. Individual accounts generally have lower thresholds. Whereas, joint or corporate accounts may require larger minimum amounts due to their different usage or risk profiles.

• Type of FD

Fixed deposits vary in purpose and features. Regular FDs often have standard minimum requirements. On the other hand, specialised ones like tax-saving FDs or senior citizen FDs might have higher or lower limits based on interest rates.

• Bank’s Policies and Regulations

Each bank determines its own minimum deposit criteria based on a range of factors. This variation means the same type of FD might require different minimum amounts at different banks.

• Geographic Location

Regional or branch-specific factors may affect deposit thresholds. For instance, urban branches might demand higher minimum amounts compared to rural ones. These are influenced by local economic conditions or customer demographics.

The minimum deposit amount for fixed deposits (FDs) generally depends on the tenure. Typically, short-term FDs of 3 months, 6 months, or 1 year may require smaller minimum investments, usually starting at ₹1,000 to ₹10,000. 

 

Long-term FDs, with tenures extending beyond 1 year, may have higher minimum requirements. These often range from ₹10,000 to ₹1 Lakh, depending on the bank's policy.

 

While most banks maintain a consistent requirement regardless of tenure, there may be exceptions for special cases. For example, certain banks may offer tax-saving or corporate FDs with specific minimum amounts that differ from standard fixed deposit offerings.

For joint fixed deposits, the minimum deposit amount is determined by the same factors that influence individual FDs. These may include factors such as the bank’s policies and the type of FD (e.g., regular or senior citizen FD), among others. 

 

All account holders share equal rights and responsibility for the deposit, but the minimum amount is usually the same as that for individual accounts. 

For tax-saving fixed deposits (FDs), the minimum investment amount starts at ₹100, with a maximum of ₹1.5 Lakh eligible for tax deductions under Section 80C of the Income Tax Act. This tax benefit applies only to individual account holders or the primary holder in a joint FD. Usually, other joint account holders are excluded from this benefit.

 

These FDs come with a mandatory lock-in period of 5 years, meaning you cannot withdraw the funds before the term ends. Additionally, you cannot get loans or overdraft facilities against a tax-saving FD during this period.

The minimum deposit amount for an FD is decided by the bank or NBFC based on several factors: 

• Market Conditions

FD issuers consider the current market conditions, interest rates, and the demand for fixed deposits. They may adjust the minimum deposit amount to attract depositors or to manage liquidity.

• Regulatory Requirements

Regulatory authorities often impose minimum deposit requirements as part of their guidelines or regulations. FD issuers have to comply with these requirements to operate within the legal framework.

The minimum deposit amount is also influenced by the issuer's business strategy. Some issuers may target a specific segment of depositors by setting a relatively low minimum deposit amount. Others may focus on high-net-worth individuals and set a higher minimum deposit requirement.

The minimum deposit amount for fixed deposits (FDs) varies depending on multiple factors. Banks and NBFCs set different thresholds for the minimum deposit based on their business strategies, regulatory requirements, and the type of FD being offered, like regular, tax-saving, or senior citizen FDs. 

 

FD tenure and account type (individual or joint) can influence the minimum deposit amount. While short-term FDs tend to have lower minimum amounts, long-term deposits may require larger investments. Always check the specific requirements with the financial institution, as these differ between institutions and may change over time.