Looking for a way that can help you increase your savings without working hard or taking a risk? An investment that can yield regular income and high interest at the end? Yes, an investment in fixed deposit makes all this possible. It is a way that helps the people to earn specified returns on the deposits made for a predetermined period of time. In short, Fixed deposits also known as term deposits are the investment plans in which the depositor pre-set the date of account expiration and receive the deposited amount along with the accumulated interest on the date of maturity. It is a better option of saving rather than depositing the money in the savings account. This is because the interest paid on term deposits is more than the interest paid on the savings account. It is also a better option because of the following advantages:
Features & Benefits of Fixed Deposit:
Now that you are familiar with the features and benefits of FD, it is likely that you would have developed an interest in investment in it. For this, you must check the eligibility criteria.
Fixed Deposit Eligibility Criteria:
There are no rigid criteria to open an FD account. All Indian residents belonging to the mentioned constitution can book an FD -
After checking the eligibility you need to apply for it. The application can be filed either online at the particular bank’s website or at the branch office. For availing the FD facility you need to fill an application form that comprises of the following sections:
Fixed Deposit Application Form: The following fields are to be necessarily filled:
Along with the application form, the customer has to attach some documents according to the constitution he/she belongs to. The list of documents to be presented at the time of opening an account are as follows:
1. An Individual, Hindu Undivided Family, Sole Proprietorship Concern-
3. Associations/ Clubs
You can even compare the returns offered on the term investment made for the various period by using the FD calculator. It is an online device designed to calculate the maturity amount of the deposit. It computes the amount of interest accumulated on the investment at the rate prevalent on that tenure. The user just needs to enter the amount deposited, tenure and the rate of interest in the calculator. After processing the information it will tell the amount of interest accrued and the expiration value of the plan.
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