If you are looking to save some money for your future use, you could create an FD account. An FD or fixed deposit is a type of savings instrument that allows you to save a fixed amount of money for a pre-decided term. Your savings earn a fixed rate of interest annually, which can help you secure your future and pay for various financial needs.
You can create an FD online or offline. However, opening an online FD account is much more convenient. Read on to understand the steps to open a fixed deposit account online.
How to open an FD account online
An FD account can be opened at a bank or a Non-Banking Financial Company (NBFC). The process can vary slightly depending on the FD provider. However, the basic steps remain the same. Here’s what you generally need to do:
- Visit the website of the bank or NBFC you wish to create an FD account with.
- Fill up the application to open an FD account online.
- Enter basic details such as your name, address, age, bank account number, PAN, and other required information.
- Enter the deposit amount and select a term. An FD can have a minimum tenure of seven days and a maximum of ten years.
- Enter the nominee information. The nominee is the person who gets the deposit money in the event of your death.
- Enter your mobile number and email address.
- Transfer the money into the FD account.
The bank or NBFC will verify your information and activate your FD account in a couple of days. Once your account is active, you will receive a notification on your registered mobile number or email address.
While understanding how to open an FD account, it is also vital to know the documents required for starting the process. Here’s what you need:
- A copy of your PAN card
- A copy of your latest bank statement
- Identity and address proofs
- Latest coloured passport-size photographs
How to choose the right fixed deposit
It is vital to compare the interest rates and tenure options offered by different providers before you choose an FD. To ensure that you enjoy a smooth experience, check how easy the online application process is and the customer care service of the provider. Further, since you are saving your hard-earned money, make sure to choose a reliable name from the finance industry to avoid any issues of fraud later.
Now that you know how to open a fixed deposit account online, go ahead and open one right away. A fixed deposit can help you keep up with rising prices. It is also safe and contains no market-linked risk. Your earnings are assured, and you can sit back and relax while your money gains interest. Moreover, NBFCs like Mahindra Finance offer attractive interest rates on Fixed Deposits for all ages, including an additional 0.25% for senior citizens.