Wednesday, 28 May 2014

How to Apply Fixed Deposit Online

Fixed deposits are one of the most widely used forms of saving and investing money in India. This is mainly because they give a fixed and steady income on the money which is invested. The rate of interest received on Fixed Deposits is higher than the amount of interest given by banks on all their other types of accounts. The term of a fixed deposit would depend on the schemes offered by the bank. If you are looking to open a Fixed Deposit account, there are many options available to you. All reputed banks offer some really good FD schemes. It is always a wise idea to compare your options in order to choose one which would be the most feasible to you.
Apply FD Online

Thanks to the internet, opening a Fixed Deposit account is much easier than it was before. You can now open your Fixed Deposit account by completing most of the work online. You will have to provide a few important details. Here is a simple step-by-step method on how to easily open a fixed deposit account online:

1)      Bank Bazaar is the one stop place where you can compare Fixed Deposit Schemes online and apply for one which you find most convenient to you. They have tie-ups with the best of banks across India. You can find details city-wise or even on a national basis.
2)      Once you open Bank Bazaar’s website, you can click on the fixed deposit tab. From the drop down, you can choose to see details of a specific bank, or you can even take a look at the best rates offered on Fixed Deposits.
3)      You have to customize your search by filling in details of the amount and the number of years or days. You will be provided with details of the rates offered by various banks in accordance with the tenure and amount of fixed deposit you chose.
4)      If you already have in mind a specific bank, there is no need for you to compare the rates offered. What you could do, to save time, is directly check the specified bank’s fixed deposit details.
5)      Once you make your choice, you need to choose the option ‘Apply Now’. You will be provided with a fixed deposit account application for a specific bank’s scheme which you had chosen. You need to fill up the form and hand it in, in the nearest branch office of the bank you chose to open your account it.
6)      Along with the application form which you fill up online you will have to provide identity proof and some other documentation.

You will need one of the following for ID proof:

     PAN card
     Voter ID card
     Driving licence
     Government ID card
     Photo ration card
     Senior citizen ID card
For Address Proof you are required to provide any of the following documents as per the bank’s satisfaction:
     Telephone bill
     Electricity bill
     Bank Statement with Cheque
     Certificate/ ID card issued by Post office

The documentation which has to be provided might slightly vary depending on the requirements of the bank you carry out your dealings with.

Fixed Deposit Calculator To Compare Different Banks’ Interest Rates

Fixed deposits are a sensible and practical investment option for people today. There are many who might be tempted by the ascent of the stock market, but prefer to keep their investments risk free. That’s exactly what fixed deposits serve as while offering you substantial gains. Hence there are many who look at them as a blessing to grow their savings further and be on top of things. However in spite of their merits you need to make sure you are taking the right decision while investing in them.
Given the popularity of these deposits, you will find that many banks and financial institutions are offering them to consumers today. Some of the biggest Public and Private Sector banks have various fixed deposit schemes that you can benefit from. But how do you decide if a particular option holds more weight for you than the other? That’s where a Fixed Deposit Interest Calculator comes into the picture, offering you much needed clarity as far as your options are concerned. If you want your savings to grow, you have to pay attention to the interest rate you are getting, and that’s just what this calculator helps you assess.

Fixed Rate
Choose Best FD Rates

To keep yourself informed about what you are getting: Fixed Deposit Calculator is definitely a handy tool for people who want to invest their hard earned money in fixed deposits. While you are told the interest rate for a fixed deposit for the given tenure, knowing exactly what you are going to get when the term ends can be a tough ask. That’s because the interest is often calculated in quarterly compounding rate, which can be tricky to decipher. But with the help of the calculator you can know exactly what your gains are going to look like.

To make a discerning choice:  Most of us invest in fixed deposits because we want our savings to grow in a certain period of time. Fixed deposits have a higher interest rate attached to them than your regular savings accounts. But since there are plenty of fixed deposits options in the market today, choosing the right one for you can become a task. Thankfully now you can rely on Fixed Deposit Interest Calculator to make the job easier for you. It gives you the ability to compare interest rates offered by various banks in the country so that you can make the best pick.
Plenty of options right at your fingertips : Good thing about using these calculators is that you can go through interest rates offered by practically every bank in the country and compare them. Thus you will have access to all the information that might otherwise be difficult to gather. Once you have this information at your fingertips you can choose the right fixed deposit option based on the tenure and the interest rate that you are happiest with. You will also find that this calculator is fairly simple to use, and you can get the job done without any financial expertise.
Fixed Deposit Calculator is all you need to make sure your savings in fixed deposits bring you the results you deserve.

Documents required for Fixed Deposit Account Creation

Fixed deposit accounts can be opened by individuals, Hindu undivided family, sole proprietorship concerns, trusts, associations, clubs as well as partnership firms. Fixed deposit accounts can be opened with any of the private or public sector banks, non banking financial companies and post offices across the country. Accounting opening procedure for fixed deposit accounts has been streamlined by banks and non banking financial companies.
Gone are the days when individuals had to make a number of personal visits to their bank branch to open a fixed deposit account. Existing customers of the bank can now easily open a fixed deposit account online by using their net banking facility on their respective bank website. All banks need to comply with basic KYC guidelines before opening any fixed deposit account. Proof of address, proof of residence and age proof in case of a senior citizen needs to be submitted to the respective bank for opening a fixed deposit account.

Documentation Required for FD Account Opening:  All individuals, trusts, associations as well as proprietorship and private limited concerns need to submit their KYC documentation as per the KYC guidelines issues by the Reserve Bank of India.  For Indian residents banks accept dedicated proof of identity and proof of address for all fixed deposit account holders. For identity proof one can submit any of the documents including passport, PAN card, Voter ID card, Driving License, Government ID card, Photo ration card and/or any senior citizen ID card. 

For address proof any documents including passport, telephone bill, electricity bill, bank statement with cheque and/or any ID issued by post office is acceptable. In case of any other Identity proof or Address proof document can be submitted, subject to the Bank's satisfaction. Individuals will need to show the original documents for verification at the time of account opening while submitting a photocopy each for address proof and identity proof.

Fixed Deposit and Savings Bank Account:   A number of banks prefer individuals to open a dedicated savings bank account with the bank in case of opening of a new fixed deposit account. While this is not mandatory as per RBI rules, savings bank account offers the users the convenience to open any fixed despot account online without any physical visit to the bank branch. A savings bank account also helps the bank to transfer the earned interest amount in the bank account of the individuals. 

In case of termination of the fixed deposit after the completion of its tenure period, funds are easily transferred to the savings bank account of the individual. The linking of a savings bank account with the same bank branch also helps in availing any loan or overdraft facilities on the fixed deposit. In case such a request is made by the individual, the bank can easily link the deposit to the bank account streamlining the loan facilitation process.

In case the customer does not have a savings bank account with the bank, the bank usually opens a loan account for loan request against the fixed deposit making it a time consuming affair requiring multiple visits to the bank branch. Other advantages of having a savings bank account linked with the fixed deposit account is the availability of sweep-in and sweep-out facilities.

Fixed Deposit Schemes with Higher Returns

Fixed deposits have been one of the most widely used investment vehicles in India for a long time. From the most conservative investor to the high risk taking one, everyone has invested some funds in a fixed deposit scheme for a rainy day. The secured nature of the investment and higher interest rates than savings bank account make fixed deposits an investment vehicle for the masses.

In recent years however fixed deposit accounts have taken a small hit as various state owned agencies introduced tax free bonds. Such bonds offered assured returns at a better interest rate than conservative fixed deposits making them quite popular with the masses. Banks are also now starting to fine tune their fixed deposit accounts offering better rate of interest for various schemes with different tenure periods. Let us take a look at some of the fixed deposit schemes offering higher returns.

FD Interest Rate
Fixed Deposit

Special Maturity Date Fixed Deposit Schemes:

The growing competition in the fixed deposits market as well as an increase in the number of safe investment avenues, banks and non banking financial companies have introduced various fixed deposit schemes offering a higher rate of interest. These schemes often have a unique maturity date 444 days, 555 days or even 1111 days. All such fixed deposit schemes work and operate like normal fixed deposit schemes but with a better rate of interest.  Both public sector banks and private banks have received good feedback for such specially designed fixed deposit tenure schemes in the past. Punjab National Bank for example offers an interest rate of 8.75% for fixed deposits over 1 year and up to five years while offering a 9% rate of interest for a 4000 day deposit.

Senior Citizen Fixed Deposit Schemes:

All public sector and private banks have a special rate of interest for senior citizen fixed deposit accounts. The age limit to be eligible for senior citizen rate of interest for fixed deposit accounts is 60 years for men and 58 years for women. Normal citizens can also considering investing in fixed deposit accounts in the name of their parents or elders to attract higher and more lucrative interest rates.

Company Fixed Deposit Schemes:
Company fixed deposits are a better way to increase the overall rate of interest compared to traditional bank fixed deposits. While company fixed deposits offer a higher interest rate, they are a high risk investment due to their unsecured nature. With high risk come high rewards and users can consider putting some part of their overall investment in company fixed deposits.

Post Office Fixed Deposit Schemes:
Just like public and private banks, post offices all across the country also offer fixed deposit investment schemes. The government has recently increased the rate of interest for all fixed deposits under the post office making it lucrative for the semi urban and rural citizen. Interest rates on fixed deposit schemes offered by post offices have been increased as much as 0.2 per cent compared to bank fixed deposits.