FD Interest Rates of All Banks Reducing Substantially

Traditional way of saving the money is either to keep it in safe or to open a fixed deposit account. The conventional way of investment is to park money in fixed deposit. But in recent times, FD interest rates of all banks have been revised. The repo rate cut subsequently resulted in fixed deposit rate cut. The returns have significantly dropped down due to which people investing for good returns are not finding it suitable.

However, it continues to be the best option for the people who are looking forward to definite and regular returns. It is a convenient option for the risk aversing people. Despite the fact that rates are continually dropping down it retains to be the people’s choice. This is because of the following features and benefits a depositor gets. The benefits of fixed deposits are mentioned below:

  • The account can be opened with any amount
  • No limit on the deposit amount
  • Flexible range of tenure
  • High interest rate than savings account
  • Interest paid out at the frequency decided by the customer
  • Amount locked-in for specified period of time
  • Guaranteed returns
  • Source of regular income
  • Benefit of extra interest to senior citizens
  • Nomination Facility available
  • Depositor can avail loan against fixed deposit
  • No rigid eligibility criteria
  • Convenience of online account opening
  • Amount on maturity is automatically credited in the account

As stated, the account can be opened by all, the non-individual’s too can open the account. The eligible segments are:

  • Individuals
  • Hindu Undivided Families (HUFs)
  • Minor represented by parents/guardian
  • Associations
  • Clubs
  • Trusts
  • Sole proprietorship firms
  • Partnership firms
  • Limited Companies

The existing customer doesn’t has to provide much documents. However, if you are a new customer then according to the category, the following documents are to be submitted:

Documentation Required

1. An Individual, Hindu Undivided Family, Sole Proprietorship Concern-

  • ID Proof – Passport, PAN Card, Driving Licence, Voter ID, Government ID Card, Senior Citizen ID Card
  • Address Proof – Telephone Bill, Electricity Bill, ID Card Issued by Post Office, Bank Statement with Cheque,
  • A photograph

2. Trusts

  • Copy of the Trust Deed
  • Copy of the registration certificate
  • Copy of the Resolution of the Trustees authorizing the members concerned to open and operate the account
  • Photographs of the members operating the account

3. Associations/ Clubs

  • By-laws of the Association
  • Copy of the Resolution by the board authorizing the members concerned to open and operate the account
  • Photographs of the members operating the account

4. Partnership Firm

  • Partnership Deed
  • Letter from partners approving the persons concerned to open and operate the account
  • Photographs of the persons operating the account

5. Public or Private Limited Companies

  • Board Resolution / Authority Letter
  • Memorandum & Articles of Association
  • Certificate of Incorporation
  • Certificate of Commencement of Business (Public Limited Company)

Form 32 in case list of directors are not original subscribers to Memorandum & Articles of Association (in case of Private Limited Cos) Duly acknowledged by ROC Governing Act / Rules and Regulations(PSUs) (certified true copy)

The documentation process is simple. The customer doesn’t has to engage in lengthy procedure. It is very simple to open the FD account. Moreover, it is secured form of investment in terms of returns. Where, you get back what is being promised to you. The return rate is determined at the time of opening the deposit and remains intact even if the rates are revised in mid term of the plan. The customer can select the horizon period calculating his?her future requirement and select from the wide range of tenure.

It is a suitable option for those who have lump sum amount to put in. As the interest is calculated on the principal amount, the invested amount yields interest throughout the period of investment.