Opening an FD account
Some banks may allow you to open an FD account without having to open a savings bank account. However, you will be required to undergo know-your-customer (KYC) process in case the bank allows you to place a FD without a savings account.The minimum deposit required to open an FD varies from banks to banks and ranges between Rs. 1,000 to Rs. 10,000. There is no upper limit.
Any Bank can allow opening fixed deposit without opening SB Account. But it is quite preferable to open SB Account in that bank . Banks are restricted to pay the maturity amount exceeding Rs. 20000 in cash.
Required Documents for FD Account Opening
- Identity Proof. Aadhar Card. Pan Card. Passport. Voter ID Card. Ration Card. Driving Licence. Government ID Card. Senior Citizen ID Card.
- Address Proof. Telephone Bill. Passport. Electricity Bill. Certificate or ID Card issued by the Post Office. Bank statement with Cheque.
A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. The interest rate varies between 4 and 7.50 percent.
Our Fixed Deposit can be opened for periods ranging from 7 days to 10 years. You can avail of ICICI Bank Fixed Deposits for a minimum deposit of Rs 10,000 for General Customers and Rs 2,000 for Fixed Deposits for Minors.
If there is less demand for credit, banks, more often than not, decrease fixed deposit rates. On the contrary, if there is high demand for credit, banks increase fixed deposit rates. Banks typically cut rates in anticipation of a lending rate cut. Banks usually cut interest rates when their fund costs plummet.
The primary reason for the difference is that in FD you invest a lump sum amount and so the entire money earns interest for the specified period. But in a recurring deposit the first installment earns interest for 12 months period, the second for 11 months, third for 10 months and so on.
Types of Fixed Deposits
- Normal Fixed Deposits. Deposit money for a fixed tenure.
- Tax-Saving Fixed Deposits. Tax exemption on the principal deposit amount of up to Rs.
- Senior Citizens' Fixed Deposits.
- Cumulative Fixed Deposits.
- Non-Cumulative Fixed Deposits.
- Flexi Fixed Deposits.
Fixed Deposit Interest Rates by Top 10 Banks in India
| Name of Bank | For General Citizens | For Senior Citizens |
|---|
| Axis Bank | 3.50% to 7.20% | 3.50% to 7.85% |
| Kotak Mahindra Bank | 3.50% to 6.90% | 4.00% to 7.40% |
| Bank of Baroda | 4.50% to 6.60% | 5.00% to 7.10% |
| IDFC Bank | 4.00% to 8.50% | 4.50% to 9.00% |
Icici Bank FD Rates, February 2020
| Tenure | Interest Rates for Regular Deposit | Interest Rates for Senior Citizen |
|---|
| 390 days to 17 months 29 days | 6.30% | 6.80% |
| 18 months to 2 years | 6.30% | 6.80% |
| 1 year to 389 days | 6.20% | 6.70% |
| 2 years 1 day to 3 years | 6.40% | 6.90% |
Tax saving FD
| Bank | Tax Saving FD | Tax Saving |
|---|
| HDFC Bank | HDFC Bank 5 Year Tax Saving Fixed Deposit | 6.40% |
| Axis Bank | Axis Bank Tax Saver Fixed Deposit | 6.50% |
| Kotak Bank | Kotak Bank Tax Saving Fixed Deposit | 6.20% |
| ICICI Bank | ICCI Bank Tax Saving Fixed Deposit | 6.40% |
List of 10 best FD schemes for 3 years
- Shriram City.
- Mahindra Finance.
- Sundaram Finance.
- LVB.
- ICICI Home Finance.
- Yes Bank.
- ICICI Bank. The annual percentage rate paid by ICICI Bank on FDs opened for a period of 3 years is 7.10% p.a.
- HDFC Bank. The rate of interest paid on HDFC Bank FDs for a 3-year tenure is 7.00% p.a.
Divide the annual rate (the decimal form) by 12. Multiply the annual rate with the interest amount to obtain the monthly rate. Convert the monthly rate into percentage by multiplying it with 100.
A Flexi-Fixed deposit has two features which effectively combine the benefits of savings and current accounts and fixed deposits: The "Auto-sweep feature (sweep-in)": The balance in excess of a stipulated amount is automatically transferred to a fixed deposit (FD) account for a default term of one year.
You may check the details of Fixed Deposit (FD)acount online. Login to your Internet Banking Account > My Accounts > Deposits > Deposit Accounts. The new Fixed Deposit (FD) account will reflect in your Internet Banking Account within 2 working days from FD opening date.
Online banking customers of SBI can open fixed deposit (FD) online. State Bank of India (SBI) offers an easy option to its savings bank account holders to open fixed deposit/term deposits using its online banking facility.
Check all the details once again like name and address of the nominee is correctly spelt/ mentioned. Submit duly filled in nomination form at branch along with an id proof. The banker will check the form and if the same is complete in all respects, he/ she will process your request to add nominee in your account.
FD Calculation Formula:
This is A = P (1 + r/4/100) ^ (4*n) and A = P (1 + r/25)4n. Here's an example. Suppose you are investing Rs.1,00,000 in a fixed deposit for a tenor of 3 years at an interest rate of 10%. Here, P is the principal amount, n is the tenor and r is the interest rate.View E-Statement
- Login to Corporate Internet Banking.
- Click on Continue to Login.
- Enter Your Corporate ID, User ID & Password and Login.
- Click on E-Statement.
- Select Account Number, Period and click on “PDF” to generate.
