Fixed Deposits are considered the most common and risk-free savings and investment options. These options are designed to provide the depositor with guaranteed returns in the form of interest on the amount invested. The rates of interest provided on the fixed deposits are higher than what is offered on savings accounts and less than those on equities and mutual funds.
The maturity value offered on fixed deposits is generally based on the date of maturity selected by the depositor. One can procure a fixed deposit scheme by visiting the bank branch or online if the bank offers the facility through its e-portal. Once the individual completes all the formalities, they will get the Fixed Deposit Receipt (FDR) as an acknowledgement of the investment. This receipt must be kept safely since it contains important details about the investment.
What is a Fixed Deposit Receipt?
A Fixed Deposit Receipt is proof that the depositor has kept a certain amount for a specified time period at the prevailing fixed rate of interest in the bank. This receipt or document contains every single detail of the scheme. The contents of the Fixed Deposit Receipt have been mentioned below:
- Name of the depositor
- Age of the depositor
- Account details of the depositor
- Deposited amount
- Applicable rate of interest on the deposit
- Maturity date
- Interest that the depositor will get on maturity
- Deposit and scheme related instructions
This receipt acts as a proof of ownership for the individual who has opted for the scheme. Since the FDR is so important, the depositor must keep it safely and securely.
Factors to Check in the Fixed Deposit Receipt
Bank Term deposits or Fixed Deposits have become a popular investment option for people. Here are some crucial factors one needs to check in their Fixed Deposit Receipt:
- Applicable Rate of Interest and Deposit Term: These are the basic things to look for in an FD receipt and it is always better to double check the details i.e. the applicable rate of interest and the maturity term of the scheme. This becomes even more important when the depositor is renewing their old fixed deposit scheme. It is because the rate of interest is subject to change from time-to-time without any prior notice. Also, sometimes the bank discontinues certain plans. If someone has renewed their fixed deposit, it is essential to cross-check the details to avoid any confusion later.
- Maturity and Auto-Renewal Dates: The maturity date of the scheme is always mentioned on the deposit receipt. For specific planning or need such as gifting a sum to your daughter on her wedding or birthday or even for her higher education, it is extremely important to double check the maturity date to avoid any inconvenience later. Moreover, if the depositor has opted for the auto-renewal facility, do not forget to check the time of auto-renewal on the Fixed Deposit Receipt date.
- Penalties and Charges: Some banks charge a certain amount as a penalty if the deposit is withdrawn by the depositor before the maturity of the FD or a specified time period. If there is any sort of penalty on the same, it should be on the receipt. The charges for premature withdrawal may differ from one bank or provider to another.
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- Nomination Details: Not all fixed deposit schemes offer this facility. FD Receipt also acknowledges if the depositor has made a nomination. To register the nomination, the applicant has to fill out a simple form. In case of an unforeseen event like the death of the depositor, the nominee will get the benefits from the FD.
Frequently Asked Questions (FAQs):
Some of the frequently asked questions about Fixed Deposit and Fixed Deposit Receipts have been answered here:
Q. Is there a way to identify the fake Fixed Deposit Receipt?
A. It is possible to generate a fake receipt in the name of the depositor. Since the Fixed Deposit Receipt format can help you handle the situation, visit the nearest branch and ask for help or simply call the customer care team of the bank to seek assistance regarding the same.
Q. What is the process to get the payment if the deposit or misplaced or lost the fixed deposit receipt?
A. In general, the banks usually ask for a written application with details about the fixed deposit. In fact, the depositor can also apply for a duplicate receipt of their fixed deposit. Some banks may also ask you to provide certain documents to process your request. The process might differ from one bank to another. So, it is good to visit the branch or call the customer care representative for help.
Q. What is the process to get the fixed deposit receipt back?
A. To get the duplicate fixed deposit receipt, the depositor or the investor has to submit a written request stating the circumstances to the bank. Some banks may also need an indemnity bond to issue the duplicate receipt. In fact, some charges may also be levied by the bank. Hence, it is better to visit the branch to know more about the same.
Q. What are the benefits of fixed deposits?
A. Fixed deposit schemes offer a number of benefits to the depositor. Some of them have been listed here:
- The schemes come with a flexible tenure. One can choose the tenure as per their needs and budget and get assured returns at the end of the time period
- The fixed deposit schemes offer a fixed rate of interest to the depositor and, hence, returns are assured
- The interest earned can be paid on a monthly, quarterly or yearly basis as selected by the depositor at the time of investing money in the FD
- Premature withdrawal and nomination facilities are available with a number of schemes from banks
- Additional rate of interest is paid to the senior citizens which means that they can get great returns for their investment