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Online Fixed Deposit

A fixed deposit is one of the safest savings scheme in India. It backed by the government and offers a fixed rate of return on your investment. Not only does it carry minimum risk, but it also provides guaranteed returns after its term is over. All leading banks in India offer the facility of a Fixed Deposit. Post digitization of the banking and insurance sector, most of the services can be availed online. In fact, if you are already holding a savings or current account with a bank, you can easily open a fixed deposit online via net banking.

Types of Online Fixed Deposits

There are three types of FDs offered by all banks.

  • Simple Fixed Deposit: A deposit where the interest rates are pre-decided by the bank and the tenure of investment can be between 7 days to 10 years.
  • Special Fixed Deposit: These deposits come in different tenures such as 300/700/1000 days.
  • Tax Saving Fixed Deposit: An FD with a mandatory lock-in period of 5 years and comes with a tax benefit under Section 80C of the Income Tax Act, 1961.

Reasons to Invest in a Fixed Deposit Online

Following are the reasons to invest in a fixed deposit online-

  • Online Advantage: You can easily open a fixed deposit online by filling an online application form with net banking.
  • Ease of Payment: You have multiple payment options where you are not required to physically visit the bank branch. You can easily make a deposit via net banking/credit or debit card OR directly transfer it from your savings or current account.
  • Loan Facility: All FDs come with an option of availing a loan against the deposit. You can avail a loan amount of 90% of your fixed deposit.
  • Tax Savings: Fixed Deposit of ₹1 lakh for a mandatory period of 5 years is eligible for tax-benefit under Section 80C of the Income Tax Act, 1961.
  • Safe and Sound: An FD is a safe investment option in comparison to equities, gold and other traditional financial deposits.

Things to Keep in Mind Before you Make an Online Fixed Deposit

One must keep the following things in mind before making an online fixed deposit-

Choose and FD with a longer tenure

Banks offer higher rate of interest to customers who opt for an FD with a longer tenure. This is because the money remains invested for a long time. Many banks offer additional rate of interest on FDs more than 3 plus years.

Select a bank with a High Credit Rating

A bank with a higher credit rating offers more stability and a good rate of interest. Hence, it is advised to always do a bit of research on the bank where you seek an FD.

Additional Benefits

Many banks give additional benefits when you open a fixed deposit account with them. These benefits can include a loan facility, an accidental death cover or a credit card.

Liquidity/Premature Withdrawal

Every bank has got certain terms and conditions regarding liquidity of an FD before the tenure expires. Ensure that you check the schedule of charges carefully before opening an FD account. Banks usually charge penalties upon premature withdrawal.

FAQs on Online Fixed Deposit

Can I do FD online in SBI?

Yes, if you are an existing account holder, you can open an online FD via net banking. If you are not a customer, you will have to physically visit the bank branch and submit the deposit amount.

How can I break my FD online?

You can break your FD online by placing a service request via net banking.

How can I get FD in HDFC Bank?

If you are an existing account holder, you can open an online FD via net banking. If you are not a customer, you will have to physically visit the bank branch and submit the deposit amount.

Is DHFL fixed deposit safe?

Yes, DHFL is one of the safest NBFCs to invest in with an FD.

What is the minimum amount for an FD in SBI?

The minimum amount required to open an FD in SBI is ₹500.