How To Open A Fixed Deposit Account

  • Added:
    May 02, 2014
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How To Open A Fixed Deposit Account Photo by Aishwarya Mahurkar

In one sentence, this financial product can be opened via an online account, a 15 minute visit to your ATM or a 30 minute visit to your nearest bank branch. These three channels of opening a fixed deposit account are available today. Let’s understand them better to use the most efficient one for you.

Open a Fixed deposit Online

You can open a fixed deposit online. If you are an existing customer of the organization, you can log into your net-banking to open the fixed deposit account. Alternatively, if you do not have an account with the particular bank or organization, check if they have a facility to open the fixed deposit account online. The typical procedure includes opening the savings account and transferring the funds from the savings account to a fixed deposit scheme of your choice. There are banks and other organizations that offer this kind of process online.

Open a Fixed deposit Offline

This is the traditional process of opening a fixed deposit account. You visit the nearest branch of the chosen bank or the organization – open a savings account and transfer the funds from that account in the FD.  However, nowadays, there is another method available. You can also open a FD from a local ATM. However, this scheme is not available with every nationalized or co-operative bank. Select nationalized and private banks offer this service to get higher number of FDs.  Yet, it is as easy as cash withdrawal.

Open a Fixed deposit with a company

Even today, this process remains offline, mainly because most companies offer it for a limited time period only. You need to submit quite a few documents to start this kind of an account. Since these organizations choose to use these funds as a business loan, they pay higher rate of interest. You can enjoy these returns in your favour.

Each organization offers a different package, though. While these online services offer the convenience of doing the process from your home, you need to identify the true value of this financial product before opening the account. Consider the following criteria and choose the most suitable product for your financial requirements:

• Interest rate – The range of interest rates for reputed fixed deposit products  is 8% to 10%.

• Premature withdrawal penalty – Though low or no penalty products are available, they are not the norm as yet.

• Return option – Though monthly, quarterly or annual interest payments are available, the hottest one is the reinvestment plan as the compounding interest improves the total returns.

Use all this information to your advantage and choose the best fixed deposit scheme  for yourself.

Author's Profile

An experienced writer on finance topics, the author articulates of investment choices such as reputed fixed deposit products & recurring deposit schemes. She writes about a variety of topics including the benefits of recurring & best fixed deposit scheme and how to make the right investment choice.

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