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Fixed Deposit Receipt



Fixed Deposit Receipt

Deposit photo created by jcomp –

Fixed Deposit Receipts are issued to a customer by a bank or financial institution as proof against their fixed deposit in the bank. The fixed deposit receipts include all the significant information like Fixed Deposit, amount, tenure etc. along with the terms & conditions that a depositor should be aware of. Therefore it is advisable to keep fixed deposit receipts safely with other confidential documents.

Particulars of Fixed Deposit Receipt

The fixed deposit receipts mention important details apart from general information. The depositor should always check the below-mentioned points carefully before signing a fixed deposit receipt.

  • Bank Declaration – The bank specifically states the terms and conditions of every possible scenario.
  • Depositor Details – The FDR specifically mentions all the primary details of the depositor like age, DOB, etc
  • Account Details – Bank and financial institution link depositor’s bank account with a fixed deposit as per the norms.
  • Fixed Deposit Details – Details regarding amount, tenure, and rate of interest mentioned and agreed by the bank and the depositor.
  • Maturity Period – The date on which the fixed deposit completes the mentioned tenure and is eligible for withdrawal.
  • Amount Details – The final amount that the depositor will receive after the maturity of the fixed deposit. The final amount also includes interest that has been added to the principal amount.
  • Nominee – Nominee details are required as a backup to avoid future misunderstandings. If the depositor cannot claim a fixed deposit amount after maturity, the nominee is eligible to claim the amount. (Terms & Conditions differ in every bank).
  • FD Schemes – The FD interest calculation method and other schemes should be carefully read by the depositor.

Benefits of Fixed Deposit Receipt

There are several FD documents that are involved before opening an FD and some are involved post opening and FD. FD Receipt is one of them. While FDR serves as an information slip for the depositor, there are various other benefits that one can avail of by using a fixed deposit receipt.

  • Loan – The depositor can take a loan against their fixed deposit by mortgaging their FDR in their bank. FDR will be kept by the bank until the loan is settled. Once the loan tenure is completed, FDR is duly returned to the depositor. The loan against fixed deposit receipt has lower interest rates in comparison to other loan categories.
  • Withdrawal – The depositor will have to submit FDR to the bank at the time of fund withdrawal. The fixed deposit receipt will verify the ownership of the FD. It is mandatory to submit a fixed deposit receipt for premature or mature fund withdrawal.
  • Renewal – In case the depositor wishes to extend the tenure of the fixed deposit in the bank, they will have to submit a renewal application along with the existing FDR. The bank authorities will register details and issue an updated FDR for the depositor.

Investments must be planned for important goals of your children’s and family’s important events, as well as emergencies.

Things to Keep in Mind with Fixed Deposit Receipt

Banks update their policies and terms periodically, and every individual needs to stay aware and updated with the amendment of bank policies. In fixed deposit receipt, the depositor must stay updated with –

  • Rate of Interest – The depositor needs to check the rate of interest rendered by the bank on their fixed deposit during its renewal. Banks do not make prior or specific annotations for any changes.
  • Dates – In case a fixed deposit is made for a specific purpose like wedding, education, etc., which involves the requirement of funds at the specific time frame, then the depositor should double-check the maturity date of the fixed deposit or carefully approve the auto-renewal procedure of fixed deposit.
  • Forfeits – For withdrawal of funds before maturity in fixed deposit, banks or financial institutions charge penalties that get deducted from the fixed deposit amount. So one must read about premature fund withdrawals in the FDR.
  • Nominee – It is important to add a nominee to your fixed deposit application. The nominee is the rightful owner of the FD, in case the depositor faces an ill-fated incident. It is advisable to be thorough with spellings and other details of the nominee.
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