Easy Step-by-Step Guide To Apply For A Fixed Deposit

A fixed deposit account is the most common investment idea you will come across. It is a reliable tool that gives steady growth; all you need to know is how to open a fixed deposit account. With the growth of digital marketplaces, you have the option to choose between online and offline processes.  

For most banks, the process of opening a fixed deposit account remains the same. This ensures that you can book an FD in just a few minutes to start earning interest without any delays. Knowing this process can help you plan out the easiest ways you can grow your money at minimal risk. Read on to learn all about it.

What is the FD account?

The definition of a fixed deposit states that it is a term deposit account with a fixed tenure. It is a type of investment you can avail of at any point. It doesn’t require you to meet any hard and fast eligibility criteria and offers you slow but stable growth.  

On maturity, it will give you the invested amount with interest or you can access your payout at intervals and get the principal at the end of the tenure. There are certain features of FD which make this investment option reliable:

• Assured returns
• Flexible tenure
• Security and stability
• Investment ease
• Tax benefits in certain cases
• Loan against FDs
• Capital preservation

How to Open a Fixed Deposit Account

Most banks give you the option to choose your preferred method of opening a fixed deposit account. After comparing interest rates, if you know which bank you want to invest in, this simplifies the task for you. Here are the steps you can follow.

Online Process

If you want to open a fixed deposit account online, you can follow a few simple steps and book a deposit in minutes. The following steps will help you complete the process in the comfort of your home without any hassles.

For existing customers:

1. Log in to your net banking account
2. Go to the ‘Transaction’ section
3. Choose the ‘Fixed Deposit’ option 
4. Select your account branch
5. Enter your amount, tenure and appoint a nominee
6. Follow the instructions to complete the process
7. Download the fixed deposit receipt

You can also use a mobile banking app to open your fixed deposit account. Follow these steps:

1. Launch the app of your bank
2. Login using your credentials
3. Find ‘Open a Fixed Deposit Account’
4. Enter the amount you want to invest
5. Select a comfortable tenure
6. Choose the savings account from the amount that will be debited
7. Click on apply
8. Download the fixed deposit receipt

If you are not the bank’s existing customer, then you must follow these steps to open a fixed deposit account: 

1. Go to the bank’s official website 
2. Select the FD option 
3. Fill out the application form
4. Select your preferred deposit terms 
5. Make a deposit using online methods
6. Review and confirm the terms 
7. Print and save the deposit details 

Offline Process

In case you are comfortable booking your FD in person, banks have that option available too. Follow these steps to open a fixed deposit account offline at a financial institution’s branch:

1. Visit a branch
2. Ask for the FD application form
3. Fill out the form
4. Confirm the list of the self-attested documents required
5. Recheck your form and submit it with documents
6. Give the FD amount in cash or cheque 
7. Receive your FD receipt on completion 

Eligibility Criteria and Documents Required for Fixed Deposits

To open a fixed deposit account in India, the eligibility criteria are very straightforward. Here are the things you need to keep in mind while applying:

• Mention your nationality 
• Mention your age, as senior citizens get higher interest rates
• Submit documents, such as your Aadhaar, PAN, Voter’s ID or Driving license

Usually, FDs offer the best returns when you book them for special tenures offered by financial institutions. Withdrawing prematurely may result in loss of interest. So, if you require any additional funds during this period, consider applying for a loan. With the Fibe Instant Personal Loan, you get instant disbursal of up to ₹5 lakhs at competitive interest rates.

After approval, you can repay your loan over up to 36 months. However, if you want to become debt-free early and close your loan before the tenure ends, you can do that at no additional charge. All you need to do is download our Personal Loan App or log in on our website to get started. 

FAQs on Opening a Fixed Deposit Account 

What is the minimum and maximum amount to open a fixed deposit?

Most financial organisations mention the minimum FD amount ranging between ₹1,000 to ₹25,000. For most banks, there’s no maximum FD limit. However, the interest rate for selected tenure changes with the principal.  

Can I open a fixed deposit jointly with someone else?

Yes, you can open a joint FD account with someone else. Usually, you can add up to three members for one fixed deposit account. 

Is it necessary to have a savings account with the bank to open a fixed deposit?

The fixed deposit account opening process does not require you to have a savings account with the bank unless you are going for a sweep-in or Flexi FD. You can open an FD without being an 

existing customer.