In today’s society, where there is a dearth of jobs that assure you stability in income except in Government jobs, a fixed deposit is more than a necessary personal investment. All the leading banks in India offer fixed deposit schemes to help people make a saving for the future. With so many options and products, in the fixed deposit category one can be confused and clueless unless you have access to ample information on the same. One way of insuring that, is by opening a fixed deposit account online and maintaining it online. Not only does it allow you to compare products and gain access to kinds of information as well as helps clear queries but make the application and maintenance processes easier for the account holder.
Types of Fixed Deposit Schemes You Can Choose From Online
There are 3 main types of fixed deposits available from a bank online:
Simple Fixed Deposit:
The interest rates vary depending on the bank but generally the tenures for simple fixed deposits are anywhere between a 7 days to 10 years.
Special Fixed Deposits:
These fixed deposits have a different calculation when it comes to tenures and are generally in denominations of days such as 300 days, 700 day or 1000 days.
Tax Saving Fixed Deposits:
As the name suggests, these financial products help you gain benefits on taxes under Section 80C, however keep in mind that the interest that you earn from a fixed deposit is fully taxable.
Top 5 Things You Need To Know Before You Make an Online Fixed Deposit
Here are 5 things you need to know and make sure of, before you opt for an online fixed deposit scheme from a bank:
Go for A Fixed Deposit with a Long Tenure:
The longer your tenure for fixed deposit, the more interest the bank is going to reward you with. So, make sure that, even if the amount payable every month is small, you pay them over a long tenure. Banks that are often well-known come up with special deposit periods to help enhance their ratio of deposit by offering special returns on specific tenures. Do look out for them.
Choose A Bank with High Credit Ratings:
When you want to get a fixed deposit from a bank make sure the bank has high credit ratings. This will ensure the safety of your bank and a rewarding experience when it comes to dealing with a bank. You can research that when researching fixed deposits online.
Look out for Additional Benefits:
A lot of banks give you the advantage of getting a loan facility on fixed deposits when you are in urgent need of cash. Some banks may even offer insurances such as Personal Accident Cover as a free product for the customers.
Liquidity or Premature Withdrawal of Fixed Deposit:
You have to check the premature withdrawal clause of the FD as banks provide higher rates of interest generally, but the withdrawal fee may not be revealed. It is important to negotiate exit load on premature withdrawals and compromise the liquidity aspect. You can check out this clause online from the bank and then make your decision.
Makes Sure Your Fixed Deposit Helps Your TDS Look Good:
Once you have made an FD, you will declare the income through FD in the section Income from other Sources when you fill your tax returns. Under the Form 26AS the TDS payments deducted on your FD will be listed. This helps to make sure you save a little more on your taxes by treating your FD like a regular income.
Top 5 Reasons to Invest in a Fixed Deposit Online
Yet with so many things to ensure fixed deposit is a safe and secured personal investment method especially when you have it online. Here are the reasons, why:
Online Advantage to Choose:
It is very easy to apply for an FD online and one can do this through net banking or fill out an online application form. Many banks provide the facility to customers to open a term deposit online.
Easy Payment Options:
You can apply with the help of any digital payment options, be it credit card, ATM/ Debit Card and net banking. You can also link your bank account where the funds are pulled out automatically and you are simply notified about the payment.
Some banks offer extra benefits when you apply for a fixed deposit online. This includes loan facilities in case of emergencies and insurance aids like personal accidental cover etc.
Save On Taxes:
Under the Section 80C of the Income Tax Act, of India, a fixed deposit investment of up to a maximum of Rs.100,000 for up to 5 years have eligibility for tax deductions. You can file the tax deduction information in your income tax returns portfolio online. The tax saving fixed deposits are especially good for saving money and tax at the same time.
Safest Personal Investment:
Though the returns or rates of interest that you are paid are not very high, it is safe against other options such as Gold or company equities. Banks offer enough security of your money if they institution is old and has a high credit rating.
So, what are you waiting for? Check out the wide variety of fixed deposit schemes offered on BankBazaar from different banks and financial institutions and choose the fixed deposit that suits your need, the best.
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I am doing Fixed Deposit with ICICI BANK and its been around 5years. They haven't been paying good interest and its more or less same like other banks as I used to hold my salary account with ICICI, I have decided to be with one bank. There is no locking period and its flexible. They do give good support and the app is user friendly. Even deposit account can be opened through i-mobile or net banking itself.
I had a Fixed Deposit in State Bank of India, I have completed the tenure before 3months ago. I have no issues with the customer service. They are given me 7% interest rate for 2years. There is no profit and processing fee. I got an online access, where I can check the interest rate anytime on the YONO app or else SBI online.
I have invested some money through FD. My salary account is in SBI so i have a zero ATM charges and the limit is not actually set by SBI. They do have short term FDs which is pretty good. I have invested the money of Rs. 60000 and the interest rate is 10.01% for the tenure period of 16 months. There is no lockin period. There is no hassle to getting the money back.
I have invested the money in Dena bank through Fixed deposit and the growth is not that much good. They are not taking any hidden charges. Only because of the Government undertaken bank, i have selected them. They are providing a interest rate of 6% per annum. I have invested the money of Rs. 2 lakhs. There is a lockin period of 1 year.
I have opt for fixed deposit for the tax saving purpose because I have chosen five years tenure with AXIS Bank, still its going on. Only once I Invested my money it has the locking period of five years. I have option to check my transactions through mobile app. But I have concern about the interest rate is very lesser for this FD.
I had fixed deposit with SBI then I withdrawn the amount, I done Rs. 3 lakhs of investment on my daughter name then I taken the liquidity to purchase the land, at the time I struggled a lot to take that money because the process was difficult to withdrawn the money after seven months of tenure.
I had a Fixed Deposit with Union Bank of India and its closed 18 to 19 months due to personal reasons. I am doing investment but my experience is not good with FD account. In my home town, there is no other banks so just decided to go with this bank. The returns are good.
I have one FD with HDFC, I deposited Rs. 1 lakh, I was opt for 45 days of tenure. Finally I got 6.25% of interest for 45 days. It won't cover the tax, if we need tax benefits we should go for five years term. I can track the details through netbanking, on the maturity date the amount credits automatically in the account. Even the notification can customized.
HSBC staff wrongly pre closed my fixed deposit .. and calculated the interest rates wrongly and when asked them for clarification never got back .. even after following up with them repeatedly for more than 3 months.. would highly recommend not using their services.
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A V kumar
Reviewed on Aug 24, 2019
I do have a Fixed deposit account with SBI and it was carried out by Mom and even I have account for my daughter. Its still running and they have Google application separately to access online. The returns are good. I am doing monthly investment and it was opened quite a long may be 4 years.
I just opened a Fixed Deposit with ICICI BANK and have not done any survey on this. I am account holder with them so it was easy to do FD account even they are providing 7% interest rate. The process is very user friendly and never faced any hassle. I could access this account via online.
In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
I have FD with SBI, I have opt for one year term there is no such limitation for depositing the money. The interest rate is good for the FD, the online banking is convenient to take liquidity. They resolve the queries on time. Its most safe and secured.
I have selected state bnak of indis fixed deposit amount 1 lakhs , Tenure 5 years and Rate of interest 8 percentage after renewal fixed deposit 6 percentage is very less .while document directly bank . Customer service is not good and responsive.
I activated FD account with Kotak, I have been maintaining this account since when I opened saving account, I converted Rs. 5000 for one year. They are providing interest around 7.6% per annum, the online netbanking and mobile app is very convenient for deposit to FD.
I have invested my FD with ICICI BANK and also have a 3in1 account with them. The interest rate is pretty good. Recently started before 6months, I can do premature withdrawal and also have selected a locking period of 3 years. The customer service is good and overall am satisfied with this bank.
My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
Chosen my fixed deposit from State bank of India. I have invested the money of Rs. 57000 and SBI is a most popular bank all over the India and offering all the facilities compared to bank. Since i have a salary account with them, its easy to transfer the money. They are providing the interest rate of 6.5%.
Union of India fixed deposit is same as other investment. Being an existing customer I have opt for one year of fd, the online banking feature is good to open and closing the account, they was no charges for the liquidity of fund before the maturity.
Chosen my fixed deposit from state bank of India because the given rate of interest is high. They are not deducting any service charges. I have invested the money of Rs. 1 lakhs and there is no lockin period and i have chosen the plan for 1 year and they are giving a interest rate of 6.75%.