Fixed Deposits - How To Open One

By Author: Natasha Raikar
Total Articles: 4

If you are planning to put your money in a bank then Fixed Deposits (FDs) are the most popular saving instruments. FDs allow you to invest a certain sum of money for a certain period and offers attractive returns on your investment at the end of the tenure.

Most people find it safer to keep their savings in the bank rather than investing in market-linked instruments. Moreover, opening a fixed deposit account in a bank is very easy and takes very less time. You can open the account through offline or online mode, whichever is convenient for you.
Follow the steps while opening an FD account:

Offline procedure

• Visit your bank branch with which you want to open your fixed deposit account.
• Fill up the application form to open your account. The bank will provide you with either Form 401 or Form 401A. The former is meant for individuals while the latter is for companies/firms/organisations.
• Enter the details in the corresponding columns.
• Attach the relevant documents like PAN card, Aadhaar card, any of the valid address proofs (utility bills, ration card, and others), your recent photograph, along with the application form and submit.

Online procedure

The online procedure is easier and convenient:

• Firstly, compare the interest rates of various banks and opt for the right one.
• Log in to the bank website.
• You will have to register and fill the necessary details. If you already have registered earlier, you can use your login ID and password to proceed.
• You can visit the page, which has detailed information regarding the opening of your fixed deposit account. Fill the application and upload your photograph before submitting the same.
• You have to deposit a certain amount online to open the FD account, as per your convenience. You should store a minimum of INR 1,000.

Fixed deposits are accessible because of their risk-free nature and ease of management. Make sure you crosscheck the information and furnish the essential materials with the application form. Check for errors before the final submission.