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Want to Open a Fixed Deposit Account Online? Here is Everything You Need to Know

Back in the day, people used to visit a bank with relevant documents, sit across the table with a bank officer, fill up a detailed form, and open a fixed deposit bank account. The entire process would take at least half a day. 

These days, with everything accessible online, there is no need to spend all that time travelling and dealing with multiple people–just sit down at a table anywhere with a computer or laptop and open a FD account online. 

Online is preferred over offline 

These days, people prefer online to offline to open a bank account, even a fixed deposit account. In a bank where a person already has an account, it is easier. 

Using the net banking facility is the best. Complete the form and submit it online. If the person already has an account, his KYC will be with the bank.

Net banking facility  

The fixed deposit amount can be transferred from the person’s savings account using the net banking facility. Every bank’s net banking facility will have an optional feature to open a fixed deposit online.

Many banks give their savings account holders the option to open a fixed deposit online sitting anywhere. It is easy and convenient. Even the current fixed deposit rates will be there for all to see.

Requirements for opening a Fixed Deposit Account online  

Usual documents required to open a bank account will be required to open a FD account. So, identity proof, address proof, and PAN are essential requirements. Besides, an active mobile number is also required. For identity and address proof, Aadhar card, passport, or driving license will work.  

First time users will have to contact the bank for securing an active internet banking username and password. PAN is essential to apply for the fixed deposit scheme online. Banks do not charge anyone for opening a fixed deposit online. In fact, why would they? It’s business coming their way!   

Easy for existing customers 

All existing customers can apply. In fact, they do not have to submit documents and their KYC is already with the bank in which they have an account. New customers will have to go through the entire process as outlined above to open a fixed deposit online. But they will have to generate an internet banking username and password.

Opening a FD account online: procedures vary from bank to bank  

Once the FD account is opened online using the net banking facility, the depositor can easily make the deposit online. If necessary, they can also renew and close the deposit online instantly. There is no need to be physically present at the bank for any reason. 

To open an FD account online, procedures vary from bank to bank. However, the usual thing to do is to go online and check and compare FDs of different banks and choose one that suits the depositor. 

After that, follow the steps that the net banking facility instructs to open a fixed deposit account in the selected bank.

Steps to open a FD online: 

  1. Visit any bank’s official website. 
  2. Enter login information if the person already has an account with the bank. If not, create the required credentials to proceed towards making an FD with that bank. 
  3. Look for ‘Fixed Deposit’ on the given website page, click on it. 
  4. Fill out required fields, which will include tenure as well as nominee and amount. At the bottom of the form will be fields for digital signatures. 
  5. There will also be a method to submit all the required documents. At this stage, double-check to confirm whether all the details have been filled out correctly. 
  6. Make the required payment using the net banking facility. 
  7. Lastly, wait for the confirmation that the fixed deposit account has been opened. 

Why FD is a good investment? 

To reiterate, each bank has its own rules to open an FD account online. Potential depositors must compare the procedures and requirements and decide which bank they should open a FD with. 

Some banks will have higher current fixed deposit rates. Others will charge a penalty for foreclosure. All said and done, an FD account, whether opened offline or online, is one of the best investment options available. They provide a secure gateway to make payments and the user gets notified the moment money is moved out of his account. 

Conclusion 

All banks present a simple interface and onboarding to open and operate fixed deposit accounts. The question then is whether an online fixed deposit account is safe, the answer is yes. It is safe to put your money in an online fixed deposit. It is, in fact, the safest among all bank deposits.

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