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Tuesday, November 29, 2022

How to Open a FD Account in Simple Steps

India is widely known as the land of savers. And as with the beginning of a new year, it is time when people review their savings, take a look at their finances, restructure their investment options, and carefully evaluate the measures in which they can expand or diversify their portfolio venture. Also, while there are numerous investment options available in modern times as per your requirements, needs, and purposes, investing funds in a FD account is still the most favored choice of people for years,  given its exceptional long-term benefits. Keep reading the article below to learn more about what a Fixed Deposit account is and how you can open a fixed deposit account in India

What is a fixed deposit account?

FD is a financial investment instrument issued by all leading banks and financial institutions. Investors can invest their money in these FD accounts and obtain a higher interest rate than what they get in a conventional savings account. 

Also, it is one of the most preferred savings alternatives that allow you to fix your money in a lump sum and further expand your investment savings with a maximum guarantee. Fixed deposits likewise let you determine the sum you want to deposit along with your preferred interest rate and the term for which you like to deposit your money. 

In simpler terms, when you put your funds in an FD account, you technically secure your money for a set duration. Moreover, you can decide to obtain the interest on the principal sum deposited throughout the term monthly or acquire a lump sum at the end of the fixed deposit term. 

The interest amount you earn on your FD account gets added to the principal amount after every term. Apart from this, the terms of a fixed deposit account are flexible, and investors can open numerous fixed deposit accounts concurrently. 

The comprehensive PNB fixed deposit rates are pretty affordable and help you widen your investment horizon. 

Steps to Open a Fixed Deposit Account in India

When opening an FD account, you can readily open a Fixed Deposit account in two ways: Online and Offline. Mentioned hereunder are both these methods of opening a Fixed Deposit account. 

How to open a Fixed Deposit account offline?

  • If you already have a savings account at any bank or financial institution, all you need to do is download the FD application form from the bank’s website. 
  • Duly fill and sign the application form with the fixed deposit amount and your desired tenure. 
  • Submit the filled fixed deposit application form at the bank’s branch along with the documents required and the nominee details. 
  • Always ensure sufficient funds in your savings account to pay the FD amount.

How to open a Fixed Deposit account online?

  • Visit your bank or financial institution’s online banking website.
  • Create a new account or Log in with your existing username and password.
  • Find an option that says ‘Open a Fixed Deposit Account.’
  • Select the sum and term of your fixed deposit.
  • Enter the rest of the information, such as address, nominee name, associated bank account number.
  • Furnish standing instructions for debiting the chosen amount from your savings account. 
  • Consent and affirm that transfer from your saving account to your FD account.

Fixed Deposit Eligibility Criteria and Documents Required 

The below entities are qualified to open a fixed deposit account in India:

  • Indian national
  • NRI
  • Minors
  • Senior citizens
  • Companies
  • Partnership firms
  • Individuals or joint investors
  • Societies or clubs
  • Sole proprietorship

Documents required to open a fixed deposit account in India

  • Passport size photograph
  • Proof of identity ( Passport/ PAN Card/Aadhar Card/ Driving License/ Voters ID Card)
  • Proof of residence (Ration Card/ Electricity Bill/ Telephone Bill/ Employment Letter/Passbook or Bank Statement with address)
  • Age proof ( PAN card/ Passport/Birth certificate/ Bank passbook/ Driving license)

To sum up, we can say that investing in a fixed deposit is one of the most reasonable decisions you can exercise to grow your funds and save your hard-earned money from market fluctuations. If you plan to invest in a fixed deposit account, PNB Housing can be your perfect partner.

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