Detailed Guide Explaining How to Open a Fixed Deposit Account

Fixed Deposit Account

Fixed deposit is an age-old investment option that offers guaranteed returns. Here, the investment is made for a predefined tenure at specified interest rate. Due to its low risk nature, many investors prefer this form of investment. Whether you are new investor or an experienced one, financial advisors recommend having fixed deposit investment in your portfolio to ensure secure and guaranteed growth.

It is often misconstrued that only banks offer fixed deposits. However, non-banking financial companies (NBFC) are also authorised to accept fixed deposits. Moreover, the fixed deposit interest rates from such NBFCs is higher in comparison to traditional banking institutions. To invest in these fixed deposit schemes, there are primarily two ways- online or offline. Read below to know about how to open a fixed deposit account.

Online Process

With rapid digitisation across all sectors including the financial sector, it has become convenient to open a fixed deposit account online. Here you can invest your hard-earned money even when you are on the go eliminating the hassle of visiting the bank/NBFC’s branch. While the process across various financers may differ, it is more or less similar with a few options tweaked. Here is a guide on how you can open your FD account online:

Step 1: Visit the website of the bank or NBFC where you wish to invest.

Step 2: Navigate to the section where fixed deposits are located and create an account with your login credentials.

Step 3: Once you have successfully logged into your account, enter your personal details and your income details like salaried or self-employed.

Step 4: Next, input details about the FD investment amount, the tenure of the deposit, and any nomination details, if any.

Step 5: Confirm the above details and proceed to paying the said amount with a payment option of your choice.

Step 6: After successful payment, do not forget to download the acknowledgement slip that serves as a reference for future.

Offline Process

For those not familiar with the online process, the traditional option of offline investment does exist. While it is almost similar to the offline process, the only downside is you need to visit the bank or NBFC’s branch.

  • For those with an existing account, you need to submit the fixed deposit application form mentioning the details about the investment and its tenure.
  • Those who do not have any prior association with the NBFC, you also need to submit a few other documents along with the application form. These fixed deposit documents include your identity proof, address proof along with income details. This helps to complete the KYC formalities.

Now that you know how to open a fixed deposit account, make sure to compare the interest rates offered and then select the financial institution based on your preference.