Facts you must know about Bank Fixed Deposits
Do you have a wish to have fixed deposits in Indian banks? If you have such a wish then it is prudent that you make yourself aware of certain facts regarding fixed deposits at Indian banks.
Let us make our self-clear regarding the facts so that before having such deposits we are clear what we can expect.
The eligibility criteria may change from bank to bank but there are certain documents which you need to have to have a fixed deposit. You will be requiring producing documents pertaining to identity proof and address proof. If you wish to apply as a senior citizen you need to produce a proof of yourself being a senior member.
How to apply:
There are various ways by means of which you can apply. The easiest manner of applying is to use the online method. You can likewise call up a customer care center and open a fixed deposit. If you do not want such method to have a fixed deposit you can directly go a bank branch and have the same.
The schemes that you can avail: There are various schemes which you can avail. You can have fixed deposits from 7 days up to 10 years according to your wish. The schemes are named differently depending on the bank where you intend to have a fixed deposit.
The tenure of Fixed Deposit:
The traditional plan will allow you to have monthly or quarterly interest for a period of 7 days to 10 years. The reinvestment plan will allow you to reinvest the interest earned compounded quarterly for a period ranging from 6 months to 10 years.
Bank FD rates/ Interest rates:
The interest rates for senior members are 0.5% more than the general rate. The general rate starts at 4.00% and goes up to 6.50% per year. Tenure of 1 year gives the maximum interest of 6.50%.
Certain other facts that you must know
What happens at maturity? :
When your fixed deposit scheme matures then the matured amount along with bonus will get transferred to the bank account to which the deposit was linked.
Can premature closure be made? Yes, you can if you wish to close your fixed deposit before completion of the tenure. If you do so then there will be some charges which will be deducted and the remaining amount deposited to your bank account.
How you can check if the FD is created:
Using internet banking you can easily check whether the FD is created. It will reflect in your account within 2 working days.
Is TDS deductible? If the interest that you earn is up to Rs. 10,000 then no TDS deduction will be made. If it is more than Rs. 10,000 then TDS will be deducted. You can apply for having an exemption in TDS deduction by applying through filling up of Form 15G/15H.
Nomination: Nomination facility is available for fixed deposit in Indian banks.
Auto-renewal: This is a unique feature which you can avail. This feature will allow you to automatically renew the fixed deposit after it gets matured.
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