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:

●     Passport

●     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:

●     Passport

●     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.

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.

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.

State Bank of India Fixed Deposit

Fixed Deposits or FDs are traditionally, the most popular form of investment among Indians. Being the safest investment avenue, FD investments are preferred by all sections of the society and all age groups. But it is important to choose the right bank and the right scheme to avail maximum benefits as well as to fit your individual requirement. Fixed deposit schemes offered by various banks are almost similar, but interest rates vary.

State Bank of India, the country's largest public sector bank offers attractive and flexible fixed deposit schemes to its customers. All fixed deposit schemes of SBI come with a flexible tenure range. The minimum balance stipulated to open a fixed deposit account with the state Bank of India is Rs. 1000. The bank offers a flexible tenure ranging from 15 days to as long as 10 years. Loan facility is available on all fixed deposit accounts with loan or overdraft facility available for as high as 90% value of the fixed deposit. The interest rates are compounded quarterly and fixed deposits are renewed automatically. Users can access the details of their fixed deposit accounts online using SBI's net banking module.

Fixed Deposit

Eligibility and Documentation: All resident Indian nationals are eligible to open fixed deposit account with SBI. The interested customers need to provide copy of address proof and identity proofs (KYC documents), as mandated by RBI in order to open a fixed deposit account with the bank. Nomination facility is available for all SBI fixed deposit account holders.

Advantage of SBI Term Deposits: SBI offers various benefits for its term deposit holders. With its wide range of branches in urban and rural regions, reaching a SBI branch is much simpler and convenient compared to other branches. The stipulated minimum amount required to start a fixed deposit is Rs 1000 only which is far less than the minim threshold limit of most other banks. Loan and premature withdrawal facility is available for all SBI fixed deposit holders. The interest on fixed deposits can be reinvested as per the individual choice of the customer. All details of the fixed deposit account are available online for the customer.

Interest Rates for term deposits below Rs 1 Crore: The State Bank of India’s interest rates for fixed deposits are as listed below. The interest rate payable to SBI Staff and SBI pensioners is 1.00% higher than the applicable rates. The rate applicable to SBI Pensioners of age 60 years and above is 0.25% above the general payable rate.

Tenure	General Interest Rates (w.e.f. 18.02.2014)	Interest Rate for Senior Citizens (w.e.f. 18.02.2014)
7 days to 90 days	7.5	7.5
91 days to 179 days	7.5	7.5
180 days to 210 days	7	7
211 days to less than 1 year	7.5	7.5
1 year to less than 2 years	9	9.25
2 years to less than 3 years	9	9.25
3 years to less than 5 years	8.75	9
5 years and up to 10 years	8.5	8.75

Visit BankBazaar.com to understand the FD schemes offered by SBI and the various benefits associated with it.

Tax Saving FDs Vs. Regular FDs

Every bank, whether private or a nationalised bank, have fixed deposit schemes for their account holders. The aim of these fixed deposits are to help people save their funds, incomes for a particular term for a particular rate of interest and thus help these savings grow over the period of time. There are two major kinds of fixed deposits, one is the regular fixed deposit and the other is the tax saving fixed deposit.

Fixed Deposit

What is a tax saving fixed deposit?

Tax saving fixed deposit is a type of saving which is done for a definite tenure of 5 years. The amount that needs to be saved is Rs 1 lakh and is mandatory for it to meet the criteria as a tax saving fixed deposit. This kind of saving attracts tax benefits as per the Section 80 C under Income Tax Act of India. The saving is tax free for a fixed amount of Rs 1 lakh and can be shown in individual declarations for tax saving purposes. Apart from the saving done on tax, there are attractive rates of interest that are prevalent on such schemes. 8 to 8.5 % per annum is the rate of interest on this fixed deposit. So, for a small some of Rs 1 lakh, one can get a decent amount on maturity. The disadvantage of this kind of fixed deposit is that it has to be locked for a period of 5 years and cannot be broken before the maturity of the term period. Also, no loan can be taken against the tax saving fixed deposit. The interest amount is taxable as per law which gets deducted at source before the final amount is reimbursed or transferred back into your account.

What is a regular fixed deposit?

A regular fixed deposit is an excellent way of saving money. There is no restriction on time or duration for which it can be saved. From as low as one month to 10-15 years as well. The rate of interest for deposit amount for at least a period of 2 years attracts great rates of interest. It is 9 % for all and 9.25 % for senior citizens. There are options on receiving the interest amount as well. One can go in for an option wherein the interest applicable as per the decided rates can be paid to the account holder on monthly basis, quarterly basis or even on maturity of the term deposit. In a way the regular fixed deposits are flexible in nature. These deposits can be withdrawn before maturity, although they attract some deductions but when in need, these can be withdrawn. Also, one can avail loan depending upon the total amount of fixed deposit at not a very high rate of interest. In such a way one need not break the fixed deposit as well. The interest amount is taxable and deducted at source and does not have any kind of tax saving benefits unlike tax saving fixed deposits.

Axis Bank Fixed Deposits

Axis bank is the third largest private sector bank in India with its headquarters in Mumbai. Axis bank offers a wide array of banking products including many deposit schemes to suit all your banking needs. The bank offers one of the best fixed term deposit schemes in India. You can open a fixed deposit with axis bank at any branch, if you have a savings account with Axis bank. You have to fill in the fixed deposit account opening form at the branch of your choice or can open a fixed deposit hassle free online from the comfort of your home or office.

There are many fixed deposit schemes for Axis bank for various duration's including simple reinvestment fixed deposits with very competitive interest rates. You can open a FD with a minimum investment of Rs 10,000 and add more amounts in multiples of Re 1 afterwards. The minimum fixed term for the simple reinvestment fixed deposits is 6 months.

Fixed Deposit

Axis Bank Fixed Deposit Schemes
Reinvestment Deposits: When you deposit an amount in the reinvestment fixed deposit scheme, at the end of each quarter the accrued interest will be invested with the principal amount and interest will be calculated on that total sum net of TDS (Tax Deducted Source). The minimum term for a reinvestment fixed deposit is six months.

When you open a fixed deposit, you can opt for the facility of automatic rollover for both the principal amount and interest on maturity. There are two options in the Account Opening Document (AOD).

Rollover only Principal: In this type of deposits, only the principal amount of your fixed deposit will be rolled over and the interest will be paid out or can be credited to the given account.

Rollover Principal and Interest accrued: In this scheme both the principal amount and the accrued interest will be rolled over for your fixed deposit term with the interest rates offered on the maturity date.
You can also make changes in the rollover terms of the deposits on or before the maturity date of the fixed deposit. You can change the tenure, maturity instructions, payment instructions, principal amount and the rollover schemes (You can change from the rollover of Principal scheme to rollover of Principal + Interest).
Withdrawals of Fixed Deposits

Axis bank allows you to withdraw the fixed deposit amount only from the branch where the deposit is made. The period for your fixed deposits is considered in number of days. If your FD is for tenure of six months and above, the interest will be calculated on a quarterly basis. The interest rate on the rolled over amount is calculated every quarter. If the tenure is less than six months, interest is calculated at simple interest.
If you withdraw the amount prematurely you will get the interest only at a rate applicable during the period of withdrawal.  There will be a tax at source deduction as per the Income Tax regulations.

Documentation: In order to open a fixed deposit, you must submit a valid photo identification card, a photograph and an introduction by any other bank or by an Axis Bank Savings Account holder for the last six months.