Updated 12 Jan 2024
Overall, FDs are a safe and reliable investment option, suitable for those who are looking for a fixed return on their investment.
The following entities are eligible to open a Fixed Deposit account in India: -
Fixed Deposit account can either be opened by online process or offline process:
1. Online Process
2. Offline Process
Opening a Fixed Deposit (FD) account is a simple process that can be done at any bank of your choice, whether you already have an existing account with them or not. However, the requirements may vary depending on whether you already have an account with the bank or not.
If you are an existing account holder
If you do not have an existing account
The documents required to open an FD account in India can vary slightly between banks but generally include:
Additional documents may be required for specific types of fixed deposits, such as:
Fixed Deposits (FDs) are a low-risk investment option that provides a fixed rate of return for a specified period. FDs are offered by banks and financial institutions and provide higher interest rates than traditional savings accounts, making them an attractive investment option for those looking to earn higher returns on their savings.
FDs offer several advantages, such as guaranteed returns, flexibility in terms of tenure, ease of opening, and tax benefits. Certain FD schemes also allow for partial withdrawals, which can be a useful tool for meeting short-term liquidity needs.
However, it is important to note that FDs have a lock-in period, and breaking the FD prematurely may result in penalty charges. Investors should carefully evaluate their investment goals and financial needs before opting for an FD scheme and read the terms and conditions carefully to make an informed decision.
No, fixed deposits are not transferable.
No, the rate of interest is different for normal citizens and senior citizens and also different for people above the age of 80 years.
NRIs can also open the FDs or Fixed deposit account and can invest in it by depositing INR, or any other foreign currency. The banks in India offer the customised FD plans for the NRIs, and some of them are non-taxable. For instance, the NRE (NonResident External) account in India, opened by an NRI is not taxed upon by the Government Of India.
FD investment in India is totally secured. No market fluctuation can affect it. The interest rate for an FD scheme also remains fixed during a given time period, until it reaches its maturity.
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