How to Open an FD Account

A fixed deposit, or FD, is an investment option offered by numerous financial institutions. FDs are considered to be one of the safest options due to the stability in returns and the safety of corpus. 

 

There are various types of fixed deposits to choose from based on your goals, such as:

• Tax-saving FD

• Senior citizen FD

• Non-cumulative FD

• Cumulative FD

• Flexi FD

 

You can select the type of FD and open a fixed deposit account through both, online or offline methods.

While the procedure and formalities for opening a fixed deposit account differ for every FD issuer, there are some general steps. Read on to know how to open a fixed deposit account online and offline.

Fixed deposit account opening is a hassle-free procedure and saves time. On Bajaj Markets, you can complete the procedure of opening a fixed deposit account online by following these quick and simple steps:

1. Visit the official Bajaj Markets website for FD https://www.bajajfinservmarkets.in/fixed-deposit

2. Click on the “OPEN AN FD” option, which will redirect you to the fixed deposit form page

3. Enter details like your mobile number, PIN code and date of birth and click on ‘Get OTP’

4. Fill in the investment details such as the amount, tenure, interest payout 

5. Complete KYC with required documents such as PAN and Aadhaar (existing customers can directly enter nominee details)

6. Choose payment mode and complete the transaction (use net banking for investments above ₹1 Lakh)

7. Receive confirmation and FD receipt

As you learn how to open an FD account online, you can also choose to complete the fixed deposit investment procedure offline. You can get support from an executive to enjoy a smooth and seamless application procedure. 

 

Follow the steps outlined below to complete the process of open a fixed deposit account offline:

1. Visit the nearest branch of the chosen bank 

2. Request an FD application form 

3. Fill out the form with the necessary details 

4. Submit the form along with the required documents 

5. Deposit the initial amount (cash or cheque) 

6. Collect the FD receipt

Once you open your FD, you need to follow the below checklist to manage your FD account properly:

Understand the Terms and Conditions

• Review the interest rates applicable to your fixed deposit, as they can vary based on tenure and bank policies

• Understand the duration, or tenure of your FD, which can range from a few months to several years, impacting the interest earned

• Be aware of the rules regarding premature withdrawal, including any penalties or reduced interest rates that may apply

Managing the FD Account

• Keep track of the maturity date for your FD to plan for reinvestment or withdrawal effectively

• Be aware about your options at maturity, such as automatic renewal or withdrawing funds, and understand any associated terms

• Interest Rates

Compare interest rates offered by different banks to ensure you get the best return on your investment

• Tenure Options

Look for flexible tenure options that align with your financial goals

• Minimum and Maximum Deposit Amounts

Check the minimum and maximum deposit amounts to ensure they fit your budget capacity

• Withdrawal Policies

Understand the bank's policies on premature withdrawals, including any penalties or fees

• Interest Payout Options

Decide whether you prefer cumulative interest, which is added to the principal, or periodic payouts, added monthly, quarterly, etc

• Tax Implications

Be aware of the tax implications of your FD interest income, including TDS deductions and exemptions available for senior citizens

• Bank Reputation

Research about the bank’s reputation for customer service and reliability

• Documentation Requirements

Be ready with necessary documents such as identity proof, address proof, and PAN card as required by the bank

• Online and Offline Services

Check if the bank offers convenient online services, along with option to open an FD account online

• Promotional Offers

Look out for any promotional offers that may provide higher interest rates or additional benefits

Knowing the eligibility criteria is essential to understand if you can open a fixed deposit account.

 

Given below are some of the common eligibility criteria that can help you open a fixed deposit account with most of the banks and financial institutions: 

• Any Indian citizen aged 18 years or older 

• Minors aged 10 years and above can open an FD account under the guardianship of a parent or legal guardian

• NRIs are also eligible to open FD accounts, subject to specific regulations

• Individuals from Hindu Undivided Families (HUFs) can open FD accounts with appropriate documentation

• Companies

• Partnership firms

• Clubs

• Associations

• Family trusts

• Societies

Generally, FD issuers require you to submit the following documents to complete the fixed deposit investment procedure:

• PAN Card

• KYC Documents

• Photographs

 

It is essential to keep in mind that if you want to invest as other than an individual, you will have to submit additional documents. This may include registration certificates, deeds, memorandum of association, and board resolution. The required documents may differ depending on the institution you invest with.