How to Open an Online Fixed Deposit Account?
What is the procedure to open an Online fixed deposit (FD) account?
A Fixed Deposit (FD) Account is one of the most rewarding and secure investment schemes that an individual can opt. FD is a type of investment scheme where the individual parks some of his earnings in a deposit scheme for a certain period and that principal amount gets interest over time. The principal amount gets interest throughout the duration of the Fixed Deposit. The individual has the option of choosing the type of interest payout under the FD scheme. It can be either cumulative or non-cumulative interest pay-out. The interest obtained at the maturity date on a Fixed Deposit scheme is not influenced by market rate fluctuations. Some Fixed Deposit schemes allow for periodic interest payouts to cater the day to day expenses of an individual.
Benefits of Opening a Fixed Deposit Account
- There is no influence of market fluctuations on the amount due at maturity date under Fixed Deposits.
- It provides a higher Return on Investment (ROI) as compared to the other investment schemes that offer deposit facility.
- It offers interest payout options in the form of cumulative and non-cumulative payouts.
- This deposit scheme requires a minimum initial deposit to open the same.
- It is secure due to various credit rating agencies such as ICRA and CRISIL rating their credit eligibility factor.
- Fixed Deposit offers a higher interest rate for senior citizens and retirees.
- Fixed Deposits can be easily renewed by an individual and also avails a higher interest rate as compared to the previous interest rate under the same.
- Individuals can easily track their investments via online facility provided under this scheme.
- Fixed Deposits can even be used as collateral to get loans.
Documents Required to Open a Fixed Deposit
The documents required to open a Fixed Deposit account are:
- All FD schemes require a minimum initial deposit to start the respective account. The initial deposit may vary from one financial institution to another.
- Latest photograph of the potential account holder needs to be attested.
- All certified Know your Customer (KYC) documents need to be submitted to open a Fixed Deposit account.
- Furthermore, the documents may vary depending on the type of individual opting for the scheme
- The documents required for a public or private ltd company- PAN(Permanent Account Number) card details, KYC Documents , Incorporation certificate, Memorandum of Association (MOA) , Partnership deed(in case of partnership firm) ,Board resolution which mentions about opening the Bank account and all the ID proof of the authorized signatures in the application process.
- The documents required for partnership firm-PAN card details, KYC documents of the firm, certificate of registration, Partnership deed, List of the authorized partner’s signature along with ID proof needs to be submitted in the application process.
- The documents required for Hindu Undivided Family (HUF) – Certified KYC documents, PAN card (Self Attested) which resembles the name of HUF, HUF declaration, the respective bank/demat account associated with HUF and all the KYC documents of all the adults involved with the HUF needs to be submitted in the application process.
- The documents required for any local/statutory body – PAN card details along with the respective KYC documents, a list of all the signatures of the authorized persons associated and a letterhead with a self-certification.
- The documents required for registered societies are- PAN card and KYC documents, the copy of the registration certificate under the Societies Registration Act, committee resolution along with all the authorized signatures involved and a true copy of the bylaws for the society.
How to Open an Online Fixed Deposit Account
The steps involved How to Open Online Fixed Deposit account are:
- Visit the application form for opting for an Online Fixed Deposit Account at the respective Bank or Non-Banking Financial Company’s website.
- Fill the respective personal details required in the form.
- Enter the details of the nominee to be associated with this scheme.
- The next step is to enter the respective Bank account details of the individual opting for the policy.
- Select the respective ID proof to be submitted for opening an Online Fixed Deposit account.
Optimize Fixed Deposits with Bajaj Finance
Bajaj Finance provides Fixed Deposits scheme to individuals who wish to grow their earnings. The features provided under this scheme are:
- FD interest rates are provided at 8.75%-9.10% per annum.
- FD calculator is provided to calculate the maturity amount and estimate the returns in advance.
- Flexible tenors ranging from 12 months – 60 months are provided under this scheme.