Opening a Fixed Deposit Account Made Easy: What, Why and Eligibility

Opening a Fixed Deposit Account Made Easy: What, Why and Eligibility

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In today’s world, saving money has become more important than ever before, but finding the best way to grow your savings can be a challenging task. One of the most secure and reliable investment options available to investors is the Fixed Deposit (FD) account. Fixed deposit Accounts are a type of savings account where investors can deposit their money for a fixed period and earn a fixed interest rate. Fixed Deposit (FD) is a popular savings scheme offered by banks and non-banking financial institutions. The investment scheme offers investors a fixed rate of interest for a specified period on their investment amount. 

Investing in FD is a safe and secure way to earn an attractive rate of interest on your savings, making it a great investment option for individuals with a low-risk appetite. However, not everyone is eligible to open an FD account. In this article, we’ll discuss the eligibility criteria for opening a fixed deposit account and the apps you can use to open an FD account.

1. Age: To open an FD account, you must be at least 18 years old. Minors can also open an FD account, but they must have an adult as a joint account holder.

2. Residential Status: Indian residents and Non-Resident Indians (NRIs) are eligible to open an FD account. NRIs should have an NRE (Non-Resident External) or an NRO (Non-Resident Ordinary) account to invest in FD.
3. Required KYC Documents: To open an FD account, investors must submit valid Know Your Customer (KYC) documents like Aadhar Card, PAN Card, and passport. This helps establish the identity and address of the investor.
4. Minimum Investment Amount: There is a minimum investment amount required to open an FD account, which varies from bank to bank. Typically, the minimum investment amount ranges from Rs. 1,000 to Rs. 10,000.
5. Source of Funds: An individual can only invest in an FD account using their own funds. The source of funds cannot be from illegal or unethical activities.
6. Tenure: The tenure of an FD account can vary from one month to ten years, depending on the investor’s preference. Different banks offer different tenures for their FD accounts.
7. Interest Rate: The interest rate offered on FD accounts can vary depending on several factors. Banks may offer different rates of interest for different tenure and deposit amounts.
8. Nomination: It is advisable to nominate a beneficiary to receive the funds in the event of the investor’s death. FD accounts can have one or more nominees, and the nominee(s) can be changed by the investor at any time.
9. Joint Account Holder: Investors can also open a joint FD account with another individual. Both account holders must fulfil the eligibility criteria and have the required KYC documents.

With the advent of technology, the process has been simplified, and individuals can now open an FD account from the comfort of their homes. The Bajaj Finserv App is a popular platform that offers an easy and hassle-free way to open an FD account

Benefits of Opening an FD Account with The Bajaj Finserv App:

1. High-Interest Rates: The Bajaj Finserv App offers competitive interest rates on FDs, making it an attractive option for individuals looking to earn an attractive return on their investment.
2. Easy Withdrawal: With the Bajaj Finserv App, investors can withdraw their FD investment easily. Investors also have the option to avail of a loan against their fixed deposit.
3. Convenience and Flexibility: The Bajaj Finserv App allows investors to open and manage their FD accounts from the comfort of their homes or offices at any time. The app offers flexibility in terms of investment amounts, investment tenures, and interest payout options.
4. Safe and Secure: The Bajaj Finserv App is a safe and secure platform for investment. The app uses robust encryption and security protocols to ensure that all transactions are secure and confidential.
5. Quick and Hassle-Free: With the Bajaj Finserv App, investors can open an FD account quickly and easily, without the need for lengthy paperwork or visits to the bank.

Step-by-Step Process to Open an FD Account with The Bajaj Finserv App

1. Download the Bajaj Finserv App: The Bajaj Finserv App can be downloaded from the Google Play Store or App Store. Once downloaded, create an account on the app and log in using your credentials.
2. Select the FD Option: Once you are logged in, click on the FD option on the app’s homepage. You will be redirected to a page where you can select the type of FD account you want to open.
3. Choose the Investment Amount: Once you select the type of FD account, choose the investment amount. The Bajaj Finserv App allows you to invest in FDs with a minimum amount of Rs. 25,000 and a maximum amount of Rs. 5 crores.
4. Select the Tenure: After choosing the investment amount, select the tenure of the FD. The tenure can range from 12 to 60 months.
5. Choose the Interest Payment Option: You can choose between two options for the interest payment: cumulative or non-cumulative. In the cumulative option, the interest is compounded and paid along with the principal amount on maturity. In the non-cumulative option, the interest is paid out at regular intervals – monthly, quarterly, half-yearly, or yearly.
6. Select the Investment Mode: You can choose between online and offline mode to invest. If you select the online mode, the funds will be transferred via the Bajaj Finserv’s safe and secure payment gateway.
7. Submit KYC Details: To complete the account opening process, submit your Know Your Customer (KYC) details, including your Aadhaar Card, PAN card, and bank details.
8. Confirm and Invest: Review your investment details and confirm your investment.

At Last

Investing in an FD account is a safe and reliable way to grow and secure your money. FD accounts offer guaranteed returns, safety and security, ease of opening and management, flexibility and convenience, and tax benefits. It is essential to choose a bank or financial institution with a credible reputation and strong financial stability to open an FD account. With the right investment strategy and selection of a suitable FD account, investors can experience steady and stable growth of their savings over time.

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