Fixed deposits are considered a convenient and secure way to invest your money. With the recent technological advancements in the financial sector, many issuers let you open an FD online. Now, you can book a fixed deposit from the comfort of your home using a device with a stable internet connection.
Read on to learn how you can open an FD digitally, its benefits, and more.
Steps to Book an Fixed Deposit Online
Most issuers provide you the facility of opening an FD online through their official websites and mobile apps. Here are the steps you need to follow:
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Visit the official website or install the mobile app of the financial institution where you want to open the FD
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Log in to the portal or app in case you have an existing account with the institution or create a new account
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Find and choose the ‘Fixed Deposit’ tab on the issuer’s website or mobile app
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Fill out the application form by providing the FD amount, tenor, nominee, and other details
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Upload all the necessary documents and submit them with the application form
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Transfer the funds from your savings account to the FD account through the preferred mode and save the receipt for future reference
Benefits of Opening a Fixed Deposit Account Online
By choosing to open an FD through the online mode, you enjoy a wide range of benefits. Here are some of the top benefits:
Helps Avoid Branch Visits
You have the facility of opening your FD digitally just with a device and an internet connection. This helps eliminate the need to visit the branch of the issuer. You can complete the formalities at any time without the restriction of the branch timings.
Saves Time and Effort
The application process becomes much easier online since you can complete the formalities from the comfort of your home. You can do everything digitally, from filling out the application form to transferring funds.
In addition to that, you can even complete the Know Your Customer (KYC) requirements via an audio-video call. This helps minimise your effort while making the process time-effective.
Online Documentation
To open an FD, you need to submit some documents for the verification purpose. Collecting the physical documents and carrying them to the branch of the issuer is a tedious task.
However, the facility of online applications makes this easier. You can upload the needed documents to the website or the mobile app quickly and easily.
Convenient Management
In addition to the application, you can carry out various other tasks online via the issuer’s official website or the mobile app. These include:
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View details of your FD, including interest rates, tenor, etc.
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Make requests for premature withdrawals
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Download FD receipts, interest certificates, and TDS certificates for tax purposes
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Request to renew the FD after maturity
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Access customer service facility in case of any queries or complaints
Points to Consider Before Investing in an FD
Investing in any financial product or service, including fixed deposits, is a strategic decision. To ensure the safety of your initial deposit and earn high returns, keep the following points in mind:
Issuer’s Credibility
To make sure that you do not lose your initial deposit and get the interest payouts on time, check the credibility of the issuer. For instance, the Bajaj Finance FD holds an AAA rating by ICRA and CRISIL. Here are some ways in which you can assess their credibility:
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Check the ratings given by credit rating agencies
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Pay attention to the overall financial standing of the issuer
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Get reviews from existing and past FD holders
Taxation Rules
The interest that you get on a fixed deposit is subject to taxation as per the income tax slab you fall under. This is because these earnings are considered as ‘Income from other sources’.
If your priority is reducing tax liability, you can opt for a tax-saver FD. By investing in this type of FD, you can enjoy tax deductions of up to ₹1.5 Lakhs under the Income Tax Act of 1961.
Premature Withdrawal Facility
Fixed deposits come with a fixed tenor. If you are going through a financial crunch and need funds, most issuers let you withdraw funds to manage your requirements. However, know that you may need to pay a small premature withdrawal penalty for this facility.
Choosing the right fixed deposit terms is also essential to get maximum returns on your deposit. You can compute the returns at various terms manually or using an FD return calculator.
This free of cost tool provides accurate results in a few seconds with just the basic information. Input different tenors and amounts and opt for the most suitable terms that best align with your goals.