Fixed Deposit

Fixed Deposit is mainly used for saving the money for some bond period. Nowadays all
the banks are offering the FD accounts. So, the users who want to apply for Fixed
Deposit Account Opening have to choose a recognized bank. It provides a high rate of
interest than a regular savings account. Banks will return your money without any fail.
Therefore, it is the safest place for you to deposit your money. You can also take loans
on your FD. The banks are sanctioning 80% – 90% loans on your Fixed Deposit
amount. Fixed deposit is also called as a term deposit. There are many advantages and
benefits in FD. You can be fixed Deposit the money from 10 days to 10 years or many
as per your wish. A fixed deposit (FD) is a financial instrument provided by banks
or NBFCs which provides investors a higher rate of interest than a regular savings account, until the
given maturity date. It may or may not require the creation of a separate account. It is known as
a term deposit or time deposit in Canada, Australia, New Zealand, and The United States, and as
a bond in the United Kingdom and India. For a fixed deposit is that the money cannot be withdrawn
from the FD as compared to a recurring deposit or a demand deposit before maturity. Some banks
may offer additional services to FD holders such as loans against FD certificates at competitive
interest rates. It's important to note that banks may offer lesser interest rates under uncertain
economic conditions. The interest rate varies between 4 and 7.50 percent.

Benefits of FD[edit]
 Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits. The rate
of interest on the loan could be 1 to 2 percent over the rate offered on the deposit.[8]
 Residents of India can open these accounts for a minimum of 7 days.

 Investing in a fixed deposit earns you a higher interest rate than depositing your money in a
saving account.

Taxability[edit]
Tax is deducted by the banks on FDs if interest paid to a customer at any bank exceeds Rs. 10,000
in a financial year. This is applicable to both interest payable or reinvested per customer. This is
called Tax deducted at Source and is presently fixed at 10% of the interest. With CBS banks can
tally FD holding of a customer across various branches and TDS is applied if interest exceeds Rs
10,000. Banks issue Form 16 A every quarter to the customer, as a receipt for Tax Deducted at
Source.[9]
However, tax on interest from fixed deposits is not 10%; it is applicable at the rate of tax slab of the
deposit holder. If any tax on Fixed Deposit interest is due after TDS, the holder is expected to
declare it in Income Tax returns and pay it by himself.
If the total income for a year does not fall within the overall taxable limits, customers can submit a
Form 15 G (below 60 years of age) or Form 15 H (above 60 years of age) to the bank when starting
the FD and at the start of every financial year to avoid TDS.
 How bank FD rates of interest vary with Central Bank
policy[edit]
In certain macroeconomic conditions (particularly during periods of high inflation) a Central Bank
adopts a tight monetary policy, that is, it hikes the interest rates at which it lends to banks ("repo
rates"?). Under such conditions, banks also hike both their lending (i.e. loan) as well as deposit (FD)
rates. Under such conditions of high FD rates, FDs become an attractive investment avenue as they
offer good returns and are almost completely secure with no risk[citation needed]. These can be checked
with the excess rates in the country.

How to open an FD Account ?

The users who are interested in opening an FD account can apply in two ways:
(1)Offline process
(2)Online process.
For opening a new account, some essential documents are required. Before applying
for a new FD account, you have to gather all the necessary documents and then you
can apply for an FD account in any of the two ways.

Offline process for Fixed Deposit Account Opening

The following are the steps to open a new account for fixed deposit by using offline
process.

 First of all, the users have to download the application form from the official website.
You can also take the application from banks.
 Fill the form without any errors.
 Enter the necessary details on the corresponding columns.
 Attach the required documents like Aadhar card, Pan card, address proof, photo
proof, etc.
 Submit to the higher authorities.
 They will give you a receipt. It is important, and you have to show the deposit receipt
while recollecting your money.
 Until here, your application process is completed.

Fixed Deposit Account Opening Online process

Nowadays people are preferring online process for everything to decrease the
paperwork. The following are the steps to open a new account for fixed deposit by using
online process.
 First of all, choose a bank and go to its official website.
 Many banks are offering FD. So, choosing a Bank is more important.
 For example, take SBI.
 Go to SBI Official Website – https://www.onlinesbi.com.
 Search for the account opening link.
 You will find a login page. If you have a login id in SBI Account, then simply enter your
Login id and password.
 The new users can register freshly by clicking Register.Click on the Register block
and enter the necessary details.A page will open with a registration form.Fill the
registration form without any mistakes.The * mark boxes are mandatory to fill.After
filling the completely, then Click on the Submit Button.Your Registration process is
completed successfully by following the above process.
 Then go to the login page and enter your login id and password.
 A page with the FD Application form appears on the screen.
 Fill the form without any mistakes.
 Click on submit button after filling the application form.
 If there are any errors exist in your application, it will show you.
 Correct the mistakes and again submit it.
By following the above steps you can successfully complete the Fixed Deposit Account
Opening application process. So, follow the steps carefully.

Required Documents for FD Account Opening

Banks need some documents to open a new FD Account. The users have to submit the
documents list along with the application form for Fixed Deposit Account Opening. The
documents are as follows:


Identity Proof
 Aadhar Card.
 Pan Card.
 Passport.
 Voter ID Card.
 Ration Card.
 Driving Licence.
 Government ID Card.
 Senior Citizen ID Card.
 Address Proof
 Telephone Bill.
 Electricity Bill.
  Certificate or ID Card issued by the Post Office.
 Bank statement with Cheque.
Guidelines or Instructions for Fixed Deposit Account Opening

 Submit the original documents for verification and also a xerox copy of each
document.
 You can apply with any other identity proof or address proof.
 Fill the FD application form in block letters only.
 Only use black ink for to fill the Fixed Deposit Application form.
 Do not forget to fill the * Mark columns.
 Fill the form without any leave.
 Put the signature on the corresponding blocks.
 If in a case of overwriting, please countersign.

INTEREST RATES
 Fixed Deposit Calculator
Listed below are the steps to help you calculate monthly payout interest on your fixed deposits-

 Visit the bank’s portal in which you want to open an FD account.

 Select the Fixed Deposit option

 Select the fixed deposit calculator option

 Select the amount of fixed deposits

 Enter the desired tenure

 Select the monthly payout the interest option

 The online calculator will give you the estimate of monthly interest payouts as per the bank’s interest rate.
Conclusion
Fixed deposits are offered by various banks in India. Customers can deposit lump sum amount and the payout
can be obtained after the maturity period or on monthly basis. Fixed Deposit Calculator can be used to
calculate your returns and you can opt for a fixed deposit based on the monthly, quarterly or annual returns.
The deposits are safe and secure and you will meet your financial goals without any issues.

BIBLIOGRAPHY
1. Wikipedia.com
2. Policybazar.com
3. Onlinesbi.com
4. Safetrade.in
5. Hdfc.com
6. Icici.com
7. Pnb.com
8. Axisbank.com