A fixed deposit or term deposit is a preferable savings tool for investors. In the current economic environment, when stock markets are volatile, investing in FD appears to be a sensible decision. In addition, fixed deposit interest rates are high and secure, ensuring attractive returns for short-term or long-term liquidity requirements.
Fixed deposits are risk-free financial products with flexible maturity periods ranging from 7 to 10 years. These products are currently available through banks, NBFCs, and post offices around the country. Because of digitization, the procedure of opening and managing an FD account has gotten simpler. By following a simple process, you can now open an account both online and offline. Here’s what you need to know if you’re interested in opening a fixed deposit account.
How to Apply for a Fixed Deposit Account?
An investor can open an FD account both online and offline. The procedure for opening an online FD account varies based on the website options provided by the bank or NBFC, but the general process is detailed here.
Step 1: Go to the website of the NBFC or bank where you intend to open your FD account.
Step 2: Create a new ID, or if you are a customer of a specific bank and use online banking services, use the available bank user ID and password.
Step3: Select the Open FD account option on the site.
Step4: After you’ve entered a fixed deposit option, fill out the rest of the form, including the branch, amount, nominee name, tenure, and others.
Step5: Confirm the information and pay using one of the available payment methods.
Step1: Visit the bank and fill the form with all the necessary details.
Step2: Make the payment.
Investors who do not have a bank savings account must present additional documentation when creating an account. ID proof, residence proof, etc., are among the documents required. Although the FD interest rate is determined and fixed by the bank, the duration of the product also determines the rate. Therefore, you can choose the best-fixed deposit rates by evaluating the options through FD calculator.
What are the Benefits of FD?
Some of the benefits of a fixed deposit are listed below:
- Assured Returns
The FD interest rates are stable and do not fluctuate. As a result, investors receive guaranteed returns upon maturity.
- Tax benefits
For investors, the tax savings fd is a rational approach. Tax deductions of up to Rs.1.50 lakh per year are permitted under Section 80C of the IT Act, making them a safe investment option.
- Availing loans
An investor can borrow money against a fixed deposit. Furthermore, the interest rate charged is minimal, making them an effective tool for meeting short-term financial needs.
- High Returns
Compared to a savings account, the returns on the FD are fixed and high. Furthermore, there is no risk with FD compared to markets, making them an appropriate alternative and steady source of income.
Fixed deposits are one of the most popular investments products due to their multiple benefits and safety. You can also grow your savings by opening an FD account today.
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