Fixed Deposit FAQS

What is the minimum deposit amount required for opening FD account?

The minimum amount required for opening a fixed deposit account is Rs.10, 000. For amounts more than Rs.10, 000 there is no fixed multiple.

What is the minimum tenure for which I can place a fixed deposit?

15 Days

What is the range of tenure in which I can open a FD account?

You can deposit money for as short a period as 15 days and up to 10 years

Will I get a FD receipt?

YES, you will get FD receipt and please note that you will not be issued a receipt for FD opened through Internet Banking.

What are the multiples in which I can withdraw money from my FD?

You can withdraw money from your Fixed Deposit Account in multiples of Rs 1,000/-

Do Senior citizens get any extra benefit on the FD?

Yes, they do get extra benefits in the form of higher interest rates.

Is there any auto renewal facility available on FD?

Yes, you can opt for auto renewal at the time of opening the FD or anytime before the FD matures. Auto renewal allows your FD to get renewed automatically for the same period as the original deposit. However under auto renewal option the fixed deposit receipt is with the custody of the Bank and Memorandum of Deposit (MOD) is issued in lieu of fixed deposit receipt.

How do I redeem my FD?

After maturity of your FD, you can walk into any Bank across the country and claim your deposit by furnishing your Fixed Deposit receipt/Memorandum of Deposit.

What are nomination facilities available on FD?

The facility of Nomination is available for relationships in the names of individuals. Unless otherwise specifically given in writing by depositors, nomination in deposit accounts will be at Customer ID level.

Can I withdraw the fixed deposit amount before maturity?

However interest will be paid for the duration for which the deposit is held. A penalty of 1% will be charged on the FCNR deposits for premature withdrawal of deposit.

Is TDS applicable on Fixed Deposit?

Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961.

When do I become liable for TDS?

If the aggregate interest income that you are likely to earn for all your deposits held in a branch is greater than Rs. 10,000 in a financial year, you become liable for TDS.

When is TDS deducted?

TDS is made every time the Bank pays interest during the financial year and the above mentioned criterion is satisfied. In addition, Tax is also deducted when the interest is credited/cumulated in the case of cumulative deposits.

What is the difference between Bank Fix deposit and Fix maturity plan offered by mutual fund?

Bank fixed deposit is completely secure and gives a fixed return - the interest earned is taxable. FMP are a mix of various debt instruments issued by corporate, banks, RBI. They are not completely secure (very little risk) the risk is mostly to returns since the return is not absolutely fixed. FMP returns are tax-free in the hands of the investor.
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