How to Book an FD Online: Steps You Need to Know

John Cena 3 weeks ago Business Leave a comment 8 Views

A Fixed Deposit (FD) provides a safe and steady way to grow your savings. Traditionally, opening an FD involved a lengthy process at the bank branch. With the convenience of online banking, investing in an FD has never been easier.

You can easily start your deposit with online issuers or a digital financial marketplace in just a few minutes. Knowing how to book an FD online helps you stay prepared to invest in this avenue and accumulate wealth over time.

Online Application Process

Booking a fixed deposit digitally is time-saving and a very straightforward process. Here is a step-by-step guide on how you can apply online.

Choose an Issuer

In the marketplace, many issuers offer fixed deposits at a competitive rate. Find an issuer that matches your specific requirements. Compare their interest rates and charges to decide the best option.

It is also essential to check other terms and conditions before finalising your deposit. You can find all the details on the issuer’s official website.

Check the Eligibility

Once you select your preferred issuer, check the eligibility criteria for a fixed deposit. This is to maintain regulatory compliance per the Reserve Bank of India guidelines and practice KYC regulations.

Moreover, the interest rate also depends on your age factors, as senior citizens get a higher interest rate than regular citizens. Also, check the documents required to verify your eligibility on the issuer’s website.

Fill Out the Application

After checking the eligibility criteria, proceed to the application process. This includes filling out the form with your personal and contact details. Once done, you will get offers based on your eligibility, especially when applying on a marketplace.

Complete the KYC

The KYC process helps verify your identity and eligibility for the fixed deposit. It is also important to keep a record of your FD account.

Choose Suitable Terms

After completing all the formalities, you can move to the next step, where you must choose your deposit terms. This includes choosing the payout option, principal amount, and tenor.

Make Payment

The final step is to pay from your savings account to the issuer. Since fixed deposits require only one-time payments, choose your deposit amount carefully. Note that you cannot reinvest or add money to the fixed deposit later.

Save the Documents

After making the deposit, you will receive all the required documents for your FD account. Download and save for withdrawal after maturity.

Consider the Key Factors

With a fixed deposit, you have to make a lump sum investment, the terms of which you cannot change. Before that, choose suitable terms to avoid any regret. Here is a checklist that will help.

Check Interest Rates

With a plethora of issuers available online, you have a wide range of FD options available. While this is beneficial to get the best returns it can also be confusing. To simplify this, you can use an online FD calculator.

Choose a Suitable Tenor

Your fixed deposit interest payout is directly proportional to the tenor. This is because the interest rate increases with your chosen tenor. Therefore, the longer you stay invested, the higher your returns will be.

Choose a Payout Option

With a fixed deposit, you can earn regular income benefits with multiple payout options. You can get monthly, quarterly, bi-annual, or annual returns depending on your income requirements. Note that the longer the payout period, the higher the income.

Calculate the Estimated Returns

It is a crucial step to ensure you get the maximum potential returns. Enter your FD details into the fixed deposit calculator to check your interest earned and other preferred details. By changing your deposit terms, you can decide on the favourable values and unlock the best outcome.

Check Premature Withdrawal Charges

With some issuers, you have the option to withdraw your fixed deposit before it reaches the maturity period. If your FD matures in 3 years, you can withdraw your money before this time in case of any financial emergency. However, you have to pay a small penalty amount for this early withdrawal, which may range from 0.50% to 1%.

Online applications save you from long lines at the bank or financial institutions. Moreover, it allows you to make an informed decision by evaluating all the aspects. This way, you can ensure that your investment redeems outstanding results.

You can always go to a financial Marketplace such as Bajaj Markets to compare and choose from the top issuers. You can also use the fixed deposit calculator on the website to get accurate results for your estimated interest and total payout.