How to open fixed deposit account and interest rates?

Fixed deposits in India are quite popular. They are extremely secure, and reliable forms of investment that offer a guaranteed return upon completion of the term. Now, if you are looking to open a fixed deposit account, here are some things in this blog that should help you get ahead with the entire process.

Documents needed to open a fixed deposit account

One of the first things to know for the procedure of opening a fixed deposit account is the documents that you will need during the process. Here is a list of them:

Proof of Identity

As your proof of identity, you can use your Aadhaar card, passport, voter ID, driving license, ration card, etc.

Proof of address

Utility bills, bank statements and other similar forms of documentation will be accepted as your proof of address.

How to open a fixed deposit account?

There are two ways that you can go about while opening an FD account: online and offline. Here are the two methods for you in clarity:

Online fixed deposit account

The steps to follow become easier if you already have a savings bank account with the respective bank where you wish to open the FD account. Here is what you have to do:

1. Simply go to their net banking page and look for the online FD form.
2. Once you have located the form online, you will also be able to fill it up digitally and hit submit.
3. Afterwards, you can transfer funds from your savings account to the fixed deposit using the net banking facility.
4. The overall online process is quite simple. In addition, you need not go through the tiring KYC process either as the bank already has access to your details.

Offline fixed deposit account

Alternatively, you can also go the offline way so that you can open an FD account. Here are the steps:

1. Visit the nearest branch of the bank where you wish to open a fixed deposit account.
2. Ask for an application form for FD, fill up all the details as mentioned on the form, and submit it.
3. In addition to the form, you will also be asked to submit your official documents, such as proof identity, proof of address and others.
4. Once the account is open, you can deposit the desired amount into the account. You will receive a fixed deposit receipt once the transfer is completed.

What are the various types of fixed deposit account?

1. Normal fixed deposit: Deposit money for a fixed tenure, where the tenure can range from 7 days to as high as 10 years. The interest rates offered here are higher than what you get from a typical savings account.
2. Tax saving fixed deposits: These FDs offer tax exemption and hence are quite popular as well. In a calendar year, you have to invest a principal deposit amount of up to ₹1.5 lakhs. You also have a lock in period of 5 years and has a lump sum deposit amount at the start.
3. Fixed deposit schemes for senior citizens: These schemes are available only to those who have crossed 60 years of age. They get to enjoy flexible interest rates and tenures, which can be quite beneficial to them.
4. Cumulative fixed deposits: The interest gets compounded at the end of each quarter or year. You are paid back at the time of maturity of the FD.
5. Non-cumulative fixed deposits: The interest is paid as per your choice, i.e., you get to choose whether you want it monthly, quarterly, half yearly or each year. It is a good choice for the pensioners who wish to have a regular source of income without any hiccups along the road.
6. Flexi fixed deposits: Here the money can shift from your bank’s savings account to the savings account.

How to calculate the fixed deposit account interest rate?

Knowing how much interest you will yield on your fixed deposit is obviously a key metric before you go ahead. The amount of interest that you will get varies on the term, the amount that you put up and more. There are multiple online interest calculators available if you wish to know which ones the best for you. Otherwise, asking your bank official or representative can also help greatly.

Fixed deposit account with Airtel Thanks

You can also use the Airtel Thanks app to get your fixed deposit account opened with IndusInd Bank. You will get an interest rate of up to 6.5% here, while senior citizens get 0.5% more as well! Once again, this makes Airtel Thanks so much more than just an ordinary bill payment app.

Use the Airtel Thanks app to recharge prepaid or postpaid connections, broadband, DTH, pay utility bills. It can even perform cashless payments, send money to friends or family and a lot more. Try it out today!