Investing in a Fixed Deposit is one of the first steps to creating wealth and ensuring safety. Like any financial investment, there are specific procedures and formalities to open a Fixed Deposit account. However, many people are not comfortable with these, or may not have time to carry out all the mandatory requirements.
Here we explain you to simplify the entire FD opening experience:
Need for Procedures and Formalities
In the current era of time shortage and hectic work schedules, we usually hate indulging in long processes and formalities. However, these processes are essential for identification and security of our hard-earned money. However, FD opening process is not as scary as we think, anymore. With the help of technology and digitization, it is possible to open FDs online in a hassle-free way.
Crucial Points to Consider
●The amount and duration of FD
●Taxation Laws that may be applicable on you
●Check FD Interest rates and maturity value using FD Calculator
●Compare returns with banks and NBFCs, that hold highest safety ratings from CRISIL and ICRA.
●Research well about the services provided and consider ease of investing
Gather all Documents
Nowadays, documents like Aadhar and PAN are minimum requirements to open an FD. Apart from this, ensure that you keep original and self-certified photocopies of your Election card, Electricity bill, Driving License, etc. ready with you to save time.
Generally, one canceled cheque of your bank account is also required for maturity proceedings. You have the option of starting a fixed deposit online as well as offline.
Offline Method
Once you gather all the above documents, you can carry a cheque of the desired FD amount and visit a bank for your application process. After thorough verification, a bank officer will issue an FD either immediately, or you may have to collect it after 2-3 days from the bank. While filling the application form, you must ensure that you enter correct tenure to get your desired FD interest rates.
Online Method
For people who lead busy lives, the efficient method is to apply for a fixed deposit online. With Aadhar and netbanking, companies offer a completely paperless application process. You can simply use FD calculator to ascertain returns that you can get from your fixed deposit.
If you do not want to carry out the financial transaction online and still want a hassle-free experience, then NBFCS offers an easy option of document collection from your doorstep. Make sure you calculate your FD interest rate and tenure well before investing the desired amount.
Accurate Form Filling
Whether you carry out the application process online or offline, make sure you take care to fill all the details correctly without any errors. Entering nominee details is very important, as it would simplify access to funds for your loved ones, in case of an unfortunate incident.
Make sure you double-check your bank details. Fixed Deposit interest and maturity amount is now directly credited to your bank account, so any mistake here can cause you a lot of inconvenience and may end up in you losing a lot of money.
Safekeep the Details
Whether you have opened FD offline or online, maintain a habit of keeping the details safely. Preferably consider saving the soft copy and hard copy of related documents handy. Moreover, don’t forget to mark the maturity date in your calendar and make sure to set a reminder of one week prior to maturity!