{"id":6025,"date":"2023-06-27T10:53:45","date_gmt":"2023-06-27T10:53:45","guid":{"rendered":"https:\/\/friendsoftoms.org\/?p=6025"},"modified":"2023-06-27T10:53:45","modified_gmt":"2023-06-27T10:53:45","slug":"fixed-deposit-its-benefits-and-how-to-apply-onlin","status":"publish","type":"post","link":"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/","title":{"rendered":"Fixed Deposit: What it is, Benefits, and How to Apply Online?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As younger Indians take the mantle of the economy, looking for investment options to keep their earnings maximised is a never-ending journey. While there are several options in the market today, many such investments require the individual to have some risk tolerance. While conservative investors are risk-averse, we have a timeless option that is one of India\u2019s favourite wealth boosters. Meant to save capital for rainy days, occasions, and long-term events, a Fixed Deposit (FD) is one of the best alternatives to include in your portfolio. If you\u2019re looking for resources that tell you about the<\/span> <a href=\"https:\/\/www.icicibank.com\/personal-banking\/deposits\/fixed-deposit\/benefits\" target=\"_blank\" rel=\"noopener\"><b>benefits of fixed deposit<\/b><\/a> <span style=\"font-weight: 400;\">investments and how to apply online, you\u2019ve arrived at the right place. Follow our article for everything you need to know!<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Introduction_to_FDs\" title=\"Introduction to FDs\">Introduction to FDs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Importance_of_Fixed_Deposits_as_a_financial_instrument\" title=\"Importance of Fixed Deposits as a financial instrument\">Importance of Fixed Deposits as a financial instrument<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Benefits_and_features_of_Fixed_Deposits\" title=\"Benefits and features of Fixed Deposits\">Benefits and features of Fixed Deposits<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Understanding_How_FDs_Work\" title=\"Understanding How FDs Work\">Understanding How FDs Work<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Calculation_of_interest_and_returns_on_FDs\" title=\"Calculation of interest and returns on FDs\">Calculation of interest and returns on FDs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Different_types_of_Fixed_Deposit_schemes_are_available\" title=\"Different types of Fixed Deposit schemes are available\">Different types of Fixed Deposit schemes are available<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#How_to_Apply_for_an_FD_Online\" title=\"How to Apply for an FD Online\">How to Apply for an FD Online<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Tips_for_Maximising_the_Benefits_of_FDs\" title=\"Tips for Maximising the Benefits of FDs\">Tips for Maximising the Benefits of FDs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/friendsoftoms.org\/fixed-deposit-its-benefits-and-how-to-apply-onlin\/#Wrapping_Up\" title=\"Wrapping Up:\">Wrapping Up:<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Introduction_to_FDs\"><\/span><strong>Introduction to FDs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fixed Deposits (FDs), also known as term deposits or time deposits, are investment instruments offered by banks and financial institutions. In a <\/span><a href=\"https:\/\/www.icicibank.com\/personal-banking\/deposits\/fixed-deposit\" target=\"_blank\" rel=\"nofollow noopener\"><b>Fixed Deposit<\/b><\/a><span style=\"font-weight: 400;\">, individuals deposit a certain amount of money for a specific period, which is agreed upon when opening the account. The deposited amount earns a fixed interest rate over the predetermined tenure. Upon maturity, the principal amount and the accrued interest are returned to the depositor.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Importance_of_Fixed_Deposits_as_a_financial_instrument\"><\/span><strong>Importance of Fixed Deposits as a financial instrument<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">FDs are a popular and secure investment option for individuals seeking stable returns with capital protection. They offer several advantages over other investment avenues, including guaranteed returns, low risk, and flexibility in terms of investment tenure. FDs are suitable for conservative investors looking for a steady source of income and capital preservation.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Benefits_and_features_of_Fixed_Deposits\"><\/span><strong>Benefits and features of Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Guaranteed returns:<\/strong> FDs offer a predetermined interest rate, ensuring predictable returns at the end of the tenure.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Capital protection:<\/strong> The principal amount invested in an FD is protected, and there is no risk of losing the invested amount.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Flexibility in tenure:<\/strong> FDs offer various tenure options, ranging from a few months to several years, allowing individuals to choose a duration that suits their financial goals.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Regular income:<\/strong> FDs provide a steady income stream through periodic interest payouts, which can be beneficial for retirees or individuals seeking consistent cash flow.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Easy to understand:<\/strong> FDs are straightforward and easy to comprehend, making them accessible to a wide range of investors.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Low risk:<\/strong> Compared to other investment options such as stocks or Mutual Funds(MFs), FDs carry minimal risk, making them suitable for risk-averse individuals.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_How_FDs_Work\"><\/span><strong>Understanding How FDs Work<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">FDs involve depositing a specific amount of money with a bank or financial institution for a predetermined period. The deposited amount is held by the institution, and in return, the depositor earns interest on the investment. The interest rate is fixed when the account is opened and remains constant throughout the tenure.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Calculation_of_interest_and_returns_on_FDs\"><\/span><b>Calculation of interest and returns on FDs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The interest on <a href=\"https:\/\/friendsoftoms.org\/calculate-interest-on-your-fixed-deposit-with-fd-calculator\/\" target=\"_blank\" rel=\"noopener\"><strong>fixed deposits<\/strong><\/a> is calculated using the following formula:<\/span><\/p>\n<p><b>Interest = (Principal Amount \u00d7 Interest Rate \u00d7 Tenure) \/ (365 or 366, depending on the year).<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The total maturity amount is calculated by adding the interest earned to the principal amount. The interest can also be paid out at regular intervals (monthly, quarterly, half-yearly) or upon maturity, depending on the depositor&#8217;s preference.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Different_types_of_Fixed_Deposit_schemes_are_available\"><\/span><strong>Different types of Fixed Deposit schemes are available<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Regular FDs:<\/strong> The most common type of FDs, offering a fixed interest rate and tenure.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Senior citizen FDs:<\/strong> Exclusive schemes for senior citizens, offering higher interest rates.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Tax-saving FDs:<\/strong> FDs with a lock-in period of five years that offer tax benefits under Section 80C of the Income Tax Act.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Flexi or sweep-in FDs:<\/strong> FDs linked to savings or current accounts, allowing individuals to earn higher interest on idle funds.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Cumulative FDs:<\/strong> FDs where the interest is compounded and paid along with the principal amount upon maturity.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Apply_for_an_FD_Online\"><\/span><strong>How to Apply for an FD Online<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Selecting a reputable bank or financial institution:<\/strong> Research a reliable bank or financial institution offering online Fixed Deposit services. Consider factors such as reputation, interest rates, customer service, and online banking features.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Researching the available FD options:<\/strong> Explore the various FD plans provided by the selected bank. Check the interest rates, tenure options, and any special features or benefits associated with the different types of FDs.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Checking eligibility criteria and documentation requirements:<\/strong> Review the eligibility metrics set by the bank for opening a Fixed Deposit account. Ensure you meet the minimum age requirements and have the necessary identification and address proof documents, such as a PAN card, Aadhaar card, passport, etc.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Accessing the bank&#8217;s online platform or mobile application:<\/strong> Ensure that the platform is secure and reliable, with proper encryption and authentication measures in place.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Navigating the online application process:<\/strong> Locate the section for opening an account within the online banking portal or mobile app. Follow the prompts and instructions provided to begin the application process.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Uploading necessary documents and information:<\/strong> Scan or take clear photos of the required documents, such as identification and address proof. Upload these documents securely through the online platform per the bank&#8217;s instructions.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Reviewing and confirming the application details:<\/strong> Verify all the information entered during the application process, including the deposit amount, tenure, and interest rate. Ensure the details are accurate and match your investment preferences.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Making the deposit and receiving confirmation:<\/strong> Transfer the desired amount from your linked accounts to the FD account. Once the transaction is completed, you will receive an online confirmation or receipt indicating the successful opening of your Fixed Deposit account.<\/span><\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Tips_for_Maximising_the_Benefits_of_FDs\"><\/span><strong>Tips for Maximising the Benefits of FDs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Consideration of investment goals and time horizon:<\/strong> Align the tenure of your FDs with your financial objectives, whether short-term goals or long-term wealth accumulation.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Comparing interest rates and terms offered by different banks:<\/strong> Choose the bank that provides competitive rates and favorable terms to maximise your returns.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Diversifying FDs across multiple banks:<\/strong> Spread the risk and ensure a broader coverage of deposit insurance. This strategy can provide stability and protect your funds in unforeseen circumstances.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Understanding premature withdrawal and renewal options:<\/strong> Understanding and exploring the renewal options available to extend the tenure of your FD if desired.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Setting up automatic renewal or interest crediting instructions:<\/strong> Opt for automated standing instructions to ensure a hassle-free experience. This allows your FDs to be automatically renewed at maturity or has the interest credited directly to your linked account.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Monitoring and managing the FD portfolio:<\/strong> Keep track of maturity dates, interest payments, and any changes in the market rates. Stay informed about the latest developments and options to make informed decisions about your investments.<\/span><\/li>\n<\/ol>\n<h4><span class=\"ez-toc-section\" id=\"Wrapping_Up\"><\/span><strong>Wrapping Up:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Now that you have learned all there is to learn about Fixed Deposits, you can start your online application process. If you have any concerns, make sure to reach out to the bank\u2019s customer care or relationship manager for quick resolutions. We hope you found our article helpful. Stay tuned for more.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As younger Indians take the mantle of the economy, looking for investment options to keep their earnings maximised is a never-ending journey. While there are several options in the market today, many such investments require the individual to have some risk tolerance. While conservative investors are risk-averse, we have a timeless option that is one&#8230;<\/p>\n","protected":false},"author":6,"featured_media":6044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[118],"tags":[],"_links":{"self":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/posts\/6025"}],"collection":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/comments?post=6025"}],"version-history":[{"count":0,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/posts\/6025\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/media\/6044"}],"wp:attachment":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/media?parent=6025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/categories?post=6025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/tags?post=6025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}