Fixed deposits have never seemed as alluring, with equity markets seemingly keen on discovering how far they can fall. What's more, interest rates on deposits are rather attractive at present. Opening a fixed deposit may not be as quick as buying stocks, but it isn't a hassling process either. Here's detailing how you can open a bank fixed deposit and a corporate fixed deposit.
Bank deposits
The minimum amount to be deposited varies with banks, but it usually is around ₹10,000. If the foremost question on your mind regarding deposits is that you would need a savings account with the bank, be rest assured that it isn't a pre-requisite.
Most banks don't require you to be a savings account holder first, although that does have some benefits. For instance, if you have internet banking enabled, opening a fixed deposit may only require you to log on and open a fixed deposit. You can choose the kind of deposit you want to make, the time period, and the amount.
Other benefits include overdraft facilities and linking the deposit to your bank account and enabling the sweep-in and sweep-out facilities. However, online or not, opening a deposit in other banks is hardly a taxing process.
It simply involves filling out a form, putting together a set of documents and your photographs and submitting them. The bank will then issue a fixed deposit receipt which you need to hold on to.
While all banks have the required forms at their branches, a good many have them available on their website as well. Forms are either available under the ‘Accounts and Deposits' tab on the Web site or in the ‘Downloads' section.
Documentation
Documents required are for proof of identity, address, signature, and in case of senior citizenship, age. There are a variety of documents you can produce for proof of identity and address, such as your passport, driving license, voter's identity card, PAN card, ration card, recent utility bills, credit card bills and so on.
Signature proofs can take the form of passport, PAN card or a signed cheque. Apart from this, some banks demand an introduction letter from an account holder.
Company deposits
The process for opening company deposits is similar to that of a bank deposit. Forms can be downloaded from the company website or taken from the manager of the deposit scheme.
Submission of the filled-out form, along with the cheque for the deposit amount, should be done at the bank branches specified by the company or to the manger of the issue. Note that only bank deposits up to Rs. ₹100,000 are insured.