Start Your Fixed Deposit Online with Attractive Rates

Investing in a Fixed Deposit (FD) is one of the safest and most conventional ways to secure your financial future. 

With competitive Fixed Deposit rates, convenience, and returns, it lets you grow your savings, whether you are a retiree, a first-time investor, or someone looking for a customised option. Let’s take a look at how you can invest in FD and avail the benefits of it.

Why Choose Fixed Deposits?

Leading banks like ICICI Bank’s Fixed Deposits offer competitive interest rates in the market and provide returns and security. Senior citizens aged 60 years and above can earn up to 7.80% interest per annum, while those below 60 years can enjoy up to 7.25% p.a. These attractive Fixed Deposit rates make it an ideal choice for anyone who wants to invest in a stable and low-risk financial instrument.

But it’s not just the returns that make Fixed Deposits an attractive option. These deposits are designed for flexibility. Whether you want to invest for the short term or the long term, FD has a variety of tenures to choose from, ranging from 7 days to 10 years. This means you can tailor your investment to your financial goals and needs.

Fixed Deposits (FD) and Its Classifications

FDs can be classified into various types based on interest payout options, duration, and other features. Here are some of the popular FD variants available –

1. Standalone Fixed Deposit

This option would be preferred by those who like simplicity. No Savings Account is needed to open this FD, and one can get started with as low as Rs. 10,000. With a minimum tenure of 6 months, this is a hassle-free investment for short-term goals.

Key Features:

• Minimum deposit of Rs. 10,000
• 6 months to 10 years tenure
• No Savings Account required
• Standalone FD can only be closed through the branch.
• Instant KYC Completion

You can now open your Standalone Fixed Deposit online in just minutes without ever having to visit a branch. The process is quick, safe, and digital to ensure you start saving faster.

2. Regular Fixed Deposit

For those who seek a safe and flexible investment option, the Regular Fixed Deposit offers guaranteed returns with the flexibility of its online management. The individual can opt for flexible tenures between 7 days and 10 years and even enjoy the compounded interest quarterly. The minimum deposit required is Rs. 10,000, making it suitable for both short-term and long-term savings.

Key Features:

• Minimum deposit of Rs. 10,000
• 7 days to 10 years tenure
• Quarterly interest payout
• Overdraft facility against FD
• Facility for premature and partial withdrawal (penalty levied)

3. Tax Saver Fixed Deposit

Tax Saver Fixed Deposit is an investment that will help you save for your future and save taxes. Under this FD, you will be able to enjoy up to Rs 1.5 Lakh tax deductions under section 80C of the Income Tax Act. The minimum deposit for this Fixed Deposit should be Rs. 10,000, and the tenure is 5 years. 

Key Features:

• Minimum amount of Rs. 10,000
• Fixed tenure deposit: 5 years
• Tax deduction under Section 80C up to Rs. 1.5 Lakh
• No premature withdrawal and no auto renewal facility

This FD scheme is best for tax planning and long-term financial growth.

4. Money Multiplier Fixed Deposit

The product is ideal for those seeking a mix of liquidity and high returns, using Money Multiplier Fixed Deposit, which can start with a minimum deposit of Rs. 5,000. Then, one can begin this FD with flexible tenures starting from 1 year and above. It is an interesting feature of FD, known as an automatic reverse-sweep facility. The system would automatically sweep a required amount from your FD to fill the deficit if your Savings Account balance dips below Rs. 10,000.

Key Features:

• Minimum deposit of Rs. 5,000
• 1 year tenure and above
• Automatic reverse sweep for Savings Account liquidity
• FD is broken on a Last-In, First-Out (LIFO) basis

This FD offers an optimal balance between earning interest as well as liquidity to its account holder

Benefits of opening an FD online:

Opening a Fixed Deposit is quite easy and can be done in less than 60 seconds online. Here are some of the major benefits of putting money in Fixed Deposits with banks like ICICI Bank: 

1. Quick FD Setup: Open an FD using Internet Banking or the iMobile app. No paperwork or branch visits are required.
2. Assured Returns: With high FD rates, you can also enjoy assured returns on your investment.
3. Emergency Funds: This bank offers overdraft facilities from 90% value of your FD to ensure funds are accessible in case of an emergency.
4. Customised Tenure: Select a flexible tenure from 7 days to 10 years according to financial goals.
5. Tax Benefits: Save up to Rs. 1.5 Lakh per year, tax-free, under Section 80C with Tax Saver Fixed Deposit.

Eligibility and Documents Required 

The eligibility criteria to open an FD are::

• Indian Citizens or Residents and NRIs.
• Hindu Undivided Families (HUF), Proprietorship firms, Partnership Firms, Private Limited companies Trust accounts, etc. You can also open an FD in a minor’s name with the consent of the guardian.

The Eligible documents include Identity Proof (Aadhaar, Passport, Voter ID), Address Proof (Utility Bill, Property Tax Receipt, etc) Ensure your Savings Account is KYC verified for a smooth process.

How to Open an FD Online – Process

Opening a Fixed Deposit is swift, hassle-free, and entirely online. Here’s how you can do it-

1. Login: Login to your Internet banking account or open the mobile application of your preferred bank.
2. Choose Investment Amount: Decide upon how much you want to invest, be as low as Rs. 10,000.
3. Choose Tenure: Choose a suitable tenure- 7 days up to 10 years.
4. Set Payout Plan: Choose how the interest should be payable, whether monthly, quarterly, or annually compounded.
5. Complete KYC: If not done, complete your online KYC
6. Submit: Confirm all the details and your FD will be opened.

Conclusion

Investing in Fixed Deposits is an easy way to secure your financial future while earning attractive returns. Whether you are a senior citizen seeking a higher interest rate or an individual looking for a flexible investment option, Fixed Deposits cater to all your needs.