Since they are risk-free in nature, FDs have proven to be a reliable investment choice for many. Fixed deposits are currently available from a variety of banks and non-banking financial institutions, as well as post offices. Investors who already have a savings account with a bank may open FD online. Several banks will let you open FD account even though you don’t have a savings account with them. With the advent of digitalization, opening and maintaining a FD account online has become a breeze. You must have a good understanding of the process for opening FD online once you have chosen an FD account provider.
What is a fixed deposit?
A fixed deposit is a type of investment in which investors put down a lump sum of money for a set period of time. During the term of the FD, interest is paid on the principal sum in a cumulative manner. This investment option is prominent since it pays a higher rate of interest than other savings accounts. FD account interest rates can differ from one bank to the next. FD investments can be long-term or short-term, depending on the investors’ portfolio. Fixed deposits have a variety of terms ranging from seven days to ten years. Investors should bear in mind, however, that no withdrawals before maturity are permitted without incurring financial penalties.
How to open fd online?
- Online Process
Investors can open FD online and save time, as well as benefit from other features such as easy payment, renewal, and closing. The process for opening a fd account varies by bank. Different banks’ websites can offer different types of options.
- Offline process
Investors can open FD with any bank of their choice, whether or not they already have a bank account. The steps for opening a fd account offline, whether with or without an existing account, are nearly identical. The initial move is to go to your local branch.
- If you already have an account: Fill out and email the FD application form to the branch.
- If you don’t have an account yet: To complete your KYC, you must have identity proof, address proof, and a few other documents in addition to the FD application form.
Benefits of opening Fixed Deposit Account
- Returns that are guaranteed
Fixed deposit interest rates are unaffected by market conditions and remain constant. As a result, FDs have guaranteed returns on maturity.
- Tenure that can be changed
Depending on their investment portfolio and financial goals, investors can choose between long-term and short-term fixed deposits. Fixed deposits can range in duration from seven days to ten years.
- Increased capital gain
Some fixed deposits use the cumulative approach to measure interest, with interest compounded monthly, quarterly or half-yearly. This strategy means that the principal sum earns further interest.
- A consistent stream of income
Some FDs enable investors to choose a monthly payout from their FD accounts, which can be a reliable source of income.
- Tax advantages
Section 80C of the Income Tax Act of 1961 provides tax incentives to investors.
Among the many FD providers in the industry, Bajaj Finance is one of the most reliable. Higher returns, flexible tenure, lower minimum deposit cap, and loan against FD facility are just a few of the benefits that Bajaj Finance FD offers to investors. When it comes to FD interest rates, Bajaj Finance offers the highest rate of 7.00 percent. On the other hand, the current Bajaj Finance FD interest rate for senior citizens varies from 6.40 percent to 7.25 percent.