Opening a fixed deposit does not require one to go to a branch. An FD mobile application allows for registering, completing KYC, booking of the deposit, and tracking it down digitally. The investor should have the required documents at hand and understand the terms of the contract they are going to sign before booking.
Documents Required Before Starting
Having the basic documents ready can make the application process easier. Before starting, keep these details available:
- PAN card
- Aadhaar card
- Mobile number linked to Aadhaar
- Bank account held in your own name
- Amount you want to deposit
- Preferred deposit tenure
Registration And KYC Verification
Start by downloading the FD mobile app from the official app store. Check the developer’s name before installing it.
Registration usually involves entering your mobile number, receiving an OTP, and setting up a PIN or password. Never share an OTP with anyone.
Most platforms require PAN and Aadhaar details for verification. Some may also ask for a selfie or video verification. If the name on your documents does not match, correct the details through the relevant source before proceeding.
Steps to Book an Online Fixed Deposit
The process may vary between platforms, but the basic steps are similar.
- Log in to the FD mobile app.
- Open the section showing available deposit options.
- Compare rates for your chosen tenure.
- Enter the amount you want to deposit.
- Check the maturity date and maturity value.
- Select the interest payout option.
- Choose whether you want renewal at maturity.
- Add or confirm the nominee’s details.
- Complete payment through the available method, such as UPI or net banking.
- Save the e-receipt or booking confirmation.
Nominee, Interest Payout and Renewal Options
A nominee can make it easier for family members to make a claim if required. Enter the nominee’s details carefully and check the information before confirming the deposit.
Interest may be paid monthly, quarterly, or at maturity, depending on the product. Choose the option based on when you may need the interest.
Autorenewal also needs attention. If enabled, the deposit may be renewed at the rate available on the maturity date.
Managing the Fixed Deposit After Booking
The work does not end after booking the deposit. A good fixed depost app should let you view your deposit details and access important records.
Keep your registered mobile number and email address updated so you do not miss maturity alerts or other communications. You may also be able to download deposit statements and related certificates from the app. If the linked bank account changes, update the payout details before maturity where the platform allows it.
Understanding Applicable Deposit Terms and Limitations
An FD has certain conditions that are worth checking before you invest.
- Premature withdrawal may reduce the applicable interest or involve a penalty.
- Some deposits may have a lock-in period.
- Interest earned on an FD is taxable under applicable income tax rules.
- TDS may apply when interest crosses the prescribed limit.
- Deposits with NBFCs do not have DICGC deposit insurance cover.
Managing Maturity, Withdrawal and Renewal
One should always remember the maturity date from the day they book the deposit. A week before the date, it is advisable to decide what to do with the money. One can withdraw the money, renew the deposit, or invest in a different issuer or tenure.
In the case of renewal, one should remember that the interest rate might be different. For a tax-saving FD, there is a five-year lock-in, and so the deposit generally cannot be withdrawn before the due time.
Account and Payment Security
A user should take care to keep the FD mobile application PIN, password, or whatever secure means they use to unlock the app safe. It is advisable to refrain from using a public network to make payments or access the account.
One should also make payments via the payment details provided by a reliable source or the FD issuer. In case anything seems odd, one should contact the relevant official channel and ask to report or verify the problem while keeping the booking records handy.
Tax Documentation and Record Keeping
Keep your FD interest records organised throughout the year. Interest earned is generally included in taxable income as per the applicable rules.
If TDS has been deducted, download the relevant interest or TDS certificate from the bank or platform. You can also keep the annual tax statement for reference and check whether the figures match your records.
Eligible taxpayers may use Form 121 where the applicable conditions are met. If your tax situation is complicated, consider checking the details with a qualified tax professional.
Conclusion
Starting an FD online involves more than entering an amount and making a payment. Keep your documents ready, complete KYC carefully, check the deposit terms, and select the nominee and payout options that suit your needs. After booking, keep track of the maturity date, account records, and tax documents. The Jio Finance app can also be explored for accessing financial services digitally and managing relevant financial activities through one app.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
