How to Invest in a Fixed Deposit (FD)

Apply online in just a few steps to open a fixed deposit with us.

How to invest in a fixed deposit?

A step-by-step guide to invest in a fixed deposit

1. Click on ‘Open FD' at the top of this page to open our online application form.
2. Enter your 10-digit mobile number and verify the OTP sent to your phone.
3. Fill in the investment amount, choose the investment tenure and the payout frequency. Enter your PAN card and date of birth.
4. Complete your KYC: If you are an existing customer, confirm the details available with us, or edit to make any changes. For new customers, complete your KYC using Aadhaar.
5. A declaration will be displayed. Please read it carefully and agree to the terms and conditions. Enter your bank details and proceed to pay.
6. Complete your investment using NetBanking/ UPI or NEFT/ RTGS.

Once your fixed deposit is booked, you will receive the Fixed Deposit Acknowledgement (FDA) on your registered email address and as a link on your mobile number. An Electronic Fixed Deposit Receipt (e-FDR) will also be sent to your email ID within 3 working days (subject to documents being in the correct order).

Things to Consider Before Investing in a Fixed Deposit

• Interest Rate: Compare the offered interest rates across different banks or financial institutions to ensure you get the best return on your investment.
  
• Tenure: Choose a tenure that aligns with your financial goals, whether short-term or long-term.
  
• Interest Payout Frequency: Decide if you want periodic interest payouts or prefer to accumulate your earnings until maturity.
  
• Lock-in Period: Be aware of any lock-in periods associated with the fixed deposit, as premature withdrawals may incur penalties.
  
• Liquidity Needs: Consider your liquidity requirements; fixed deposits are less liquid compared to savings accounts.
  
• Taxation: Understand the tax implications of interest income and whether the fixed deposit qualifies for tax benefits under Section 80C.
  
• Credibility of the Institution: Invest in fixed deposits offered by reputable and well-established banks or financial institutions.
• Penalties for Early Withdrawal: Familiarise yourself with any penalties or reductions in interest rates for premature withdrawals.
• Auto-Renewal: Determine whether the fixed deposit automatically renews upon maturity or if you need to provide instructions.
• Nomination: Consider nominating a beneficiary to ensure a smooth transfer of funds in case of unforeseen circumstances.

Conclusion

In conclusion, investing in fixed deposits (FDs) is a prudent and secure way to grow your savings while minimising risk. It provides a stable avenue for investors seeking capital preservation and reliable returns. To embark on your FD journey, start by assessing your financial goals, comparing interest rates, and selecting a suitable tenure.

Remember that FDs are ideal for both short-term and long-term objectives, offering flexibility and peace of mind. As you diversify your investment portfolio, including FDs can provide a stable foundation for your financial future. So, whether you're saving for a dream vacation, a down payment on a home, or securing your retirement, FDs offer a dependable path to achieve your aspirations. Make an informed decision, start investing in FDs, and watch your wealth grow steadily over time.