Fixed Deposit Receipt (FDR)
Updated on: 21 Dec 2023 | 9 min read
If you are looking for a safe investment instrument that offers fixed returns in the mid-term, bank fixed deposits (FDs) are the first thing that comes to mind. With an interest rate of 5% to 8% per annum, FDs can be an excellent choice for investors to protect their capital. You can also use FDs to park your emergency funds.
A Fixed Deposit Receipt (FDR) is a crucial document issued by the bank/NBFC/ /Post Office (with which you have opened your FD account) that acknowledges the investment you have made with the financial institution. It is also known as Fixed Deposit Advice (FDA) or Term Deposit Receipt (TDR). Just like you get a passbook after opening a savings bank account, you get a Bank Fixed Deposit Receipt once you open an FD account with a bank.
What is FDR — Fixed Deposit Receipt?
When you purchase clothes from a store, the shopkeeper gives you an invoice or a receipt for the same. This receipt acts as proof of purchase from that store. It contains details about size, return policy, barcode number, etc. Similarly, financial institutions give you an FD receipt to acknowledge that you opened an FD account with them. A Fixed Deposit Receipt (FDR) is a document given to the investor by the bank, NBFC, or Post Office after investing in an FD. It acts as proof of investment in the FD.
Fixed deposit receipts contain various details, such as tenure, interest rate, maturity date, etc. The FDR has all the details of your fixed deposit account and is significant in many aspects.
In this article, we will learn about all the aspects of FDR, such as its components, its purposes, and points to consider when accepting an FDR.
Key Components of a Fixed Deposit Receipt
A FDR contains information about the deposit and deposit holder. The components of a Fixed Deposit Receipt include the following:
|Name, age, and address of the investor.
|An FDR will contain your full name and age as mentioned in your Aadhaar or PAN Card. Further, FDR will also state your address based on the identity proof you provided.
|Rate of interest and tenure
|The interest rate offered by the financial institution, which may vary depending on the tenure of the fixed deposit and the bank you have chosen, will be mentioned in the FDR. You will also mention the tenure for which you wish to invest the amount. You can select the tenure while filling out the application for the fixed deposit.
|Bank account details of the investor
|An FDR will contain the investor’s account number and customer ID. Banks, NBFCs, and post offices provide these details after completing an FD account opening.
|Maturity date and value
|The maturity date and amount, i.e., the date on which the tenure of the FD ends and the amount you get after maturity, are mentioned in the FDR. Further, the document also states the interest amount you will be receiving.
|Several financial institutions provide auto-renewal options. You need to check the timeframe for withdrawing your deposit after the maturity date. Your FD will renew automatically for the same tenure if you do not withdraw the deposit within the stipulated period. The details regarding auto-renewal are given in the fixed deposit receipt.
|Deposit amount and value date
|The deposit amount is the investment you made in the FD. The value date is the start date of your FD. These details are also mentioned in the FDR.
There are two deposit types — cumulative and non-cumulative. In a cumulative FD, the interest earned in a given financial year is reinvested, and the compounded amount then makes the interest. However, in the case of a non-cumulative deposit, you receive periodic interest payments in your savings account, and there is no compounding.
You can choose the deposit type while filling out the application form for the fixed deposit. The type you select will be mentioned in the FDR.
|An investor can nominate a person while opening an FD account. This nominee receives the amount in case of the untimely death of the investor. Every bank, NBFC, and post office provides this nomination facility. The nominee details will be submitted while filling out the application form for opening an FD account. These nomination details are also mentioned on FDR.
If you need funds urgently and opt for premature withdrawal before maturity, you may need to pay a penalty. These terms of early withdrawal and details of the penalty applicable are also mentioned in the FDR.
The fixed deposit receipt format may differ for each organisation, but all the above components will be mentioned.
Things to Check in your FD Receipt FDR
There could be mistakes, whether while filling the form or generating the FDR. Therefore, checking that all the details are correctly mentioned on the Fixed Deposit Receipt is crucial. So, do check the following details on your FDR:
- Deposit Tenure: The tenure or investment you selected must be mentioned correctly in the FDR.
- Rate of Interest: Cross-checking the rate of interest is one of the most important things to do. The rate of interest remains the same throughout the tenure of the fixed deposit (except for some recently launched products by some private banks). However, at the time of renewal, the bank may change the interest rates on FDs. So, make sure whether the rate of interest is the same or has changed.
- Maturity Date: You must check the maturity date mentioned in the FDR as it helps you access your deposit at the right time. If you are planning a trip or purchasing a gift for someone with your FD’s maturity amount, knowing the date of maturity will make sure you have funds at the right time.
- Auto-Renewal: If you opt for auto-renewal, the details will be mentioned. If not, you must visit the bank on or after the maturity date to renew or withdraw.
- Prepayment Penalty: The terms of the prepayment penalty will be mentioned on FDR. You must check those terms because you may need to withdraw the deposit before the maturity date. Usually, the bank may allow you to withdraw funds at a 1% lesser rate of interest than the predetermined rate. However, the terms regarding penalty vary from bank to bank. NBFCs and post offices have their own terms regarding prepayment penalties. So, you need to check those terms carefully.
- Nominee Details: You must check whether the nomination details you mentioned while filling out the FD account opening form are correctly mentioned in the FDR. In case of the unforeseen demise of the investor, the nominee receives the amount.
Importance of FDR
- Renewal: If you opted for an offline FD, your bank might ask you to present the FDR while renewing your FD after maturity. Moreover, if you want to opt for a different tenure upon maturity, you need to surrender the existing FDR, after which you will be provided a new one.
- Premature withdrawal: In an emergency, you may need to withdraw the deposit amount before maturity. In such cases, you need to present an FDR to prove ownership. The bank will take the FDR from you and provide the money.
- For availing loans: Apart from capital preservation and fixed returns, FDs offer the option of availing loans against them. Many financial institutions provide loans against FDs at a lower interest rate than usual. To take a loan against your fixed deposit, you need to submit the FD receipt per the financial institution's terms. Once you repay the loan, the FDR will be returned to you with revised details.
The FDR in banking is the most critical document for an FD account. Without this half-page document, there is no proof of your investment, and there is no way to withdraw your deposit or avail a loan against the FD. The way a payment receipt acts as proof of purchase after shopping in a clothing store, an FDR acts as a receipt of your deposit in the financial institution. Once you open an FD account with a bank, NBFC, or post office, ensure that you get a fixed deposit receipt with all the details mentioned correctly. You must keep it safe until you close the FD account.
What is the process to get the payment if the FDR is lost or misplaced?
The process to get the payment if the FDR is lost or misplaced varies from bank to bank. Generally, you must submit an application containing all the details, along with the necessary documents asked by the bank. You can also request a duplicate receipt. It is advisable to visit the nearest branch and ask for assistance from the representatives there.
What is the process to get a duplicate fixed deposit receipt?
You need to visit the nearest branch of the bank where you opened the FD account and ask for assistance. You may need to submit a written application with all the details. Some banks also ask for an indemnity bond and a fee for providing a duplicate FDR. Please submit the necessary documents and pay the fee, if required, to get a duplicate FDR.
How to identify a fake FD receipt?
There are many instances when a fake FD receipt is generated and provided to investors or depositors. To identify a fake FD receipt, you can ask for the bank’s FDR format or download a fixed deposit receipt format pdf from the bank’s website and compare it with the FDR you received.
Do FDRs include information on tax declarations?
The interest earned through FD is fully taxable, so the information regarding tax declarations is mentioned in the FDR. No tax is deducted for persons submitting Form 15H / 15G.
What are the different benefits of opening a fixed deposit account?
Opening a fixed deposit account offers numerous benefits. These benefits include:
- Flexibility of choosing the tenure and deposit amount.
- Safe investment and guaranteed returns as returns on FDs are not market-dependent.
- Multiple options for interest payout, such as monthly, quarterly, half-yearly or annually.
- Ease in liquidity, as you can withdraw the deposit whenever you want. The terms for withdrawal are not as stringent as other investment options.
- Availability of nomination facility.
- Higher interest rate for senior citizens (people over 60 years of age).
Is the nominee mentioned on a FDR?
Yes, the FDR includes all the details of the nominee submitted by the investor. In case of a mishap, the nominee can submit the FDR and redeem the amount.