Fixed Deposit Receipt: What are the Components of an FD Receipt?

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Fixed Deposit Receipt: What are the Components of an FD Receipt?

Fixed Deposit Receipt: An Overview

Fixed deposit investment is a traditional and popular form of investment in India. It provides a fixed interest rate on your FD, making it a safe investment option. The period of a fixed deposit scheme ranges from 7 days to 120 months. Since they are non-market linked investment schemes they provide guaranteed returns irrespective of the stock market volatility. However, the rate of interest is determined by the tenure of your Fixed deposit. Investors need to remember that the rate of interest on FD may vary from bank to bank. So, make sure to do proper research before choosing any FD scheme from a bank. 

After deciding on the bank or post office in which you want to open your fixed deposit account, you are all set to open your fixed deposit account. You can open your FD account both online and offline. When you open your fixed deposit account with the bank, the bank will provide you with a Fixed deposit receipt. 

What is FDR in Banking?

FDR's full form in banking is a fixed deposit receipt. FD receipt is a document provided by the bank to the investor that acts as evidence of investment. It contains all the information related to the fixed deposit made such as the investor's name, deposit type (Cumulative or non Cumulative fixed deposit), tenure of FD, nominee details, rate of interest, date of maturity, nominee details, premature withdrawal penalty, auto renewal facility. So, a fixed deposit receipt is an important document for the investor. In case the investor misplaces the FD receipt, he or she can write an application to apply for a Fixed deposit receipt copy to the bank. 

Key takeaways:

  • The account holder receives a fixed deposit receipt from the bank upon the opening of the fixed deposit account. 
  • Fixed deposit receipts are documents that contain all the information related to the fixed deposit
  • Fixed deposit offers guaranteed returns with flexible tenure. 

Components of Fixed Deposit Receipt

There are various components of an FD receipt that you must check: 

  1. Investor details: The FD receipt contains the name, address, and age of the investor or applicant. The name of the applicant should be the same as the PAN card and Aadhar card. 
  2. Bank account details: The fixed deposit receipt contains the customer ID, the bank account number along with the customer's bank information. 
  3. The interest rate on the FD: The interest rate on Fixed deposits varies from bank to bank and depends on the tenure of the FD. FD receipt contains the interest rates for the selected tenure and maturity date. 
  4. Interest and maturity amount: The interest amount along with the maturity amount is mentioned on the fixed deposit receipt that the bank will pay the account holder. 
  5. Deposit type: Fixed deposits are of two types: Cumulative fixed deposits and non-cumulative fixed deposits. So, the type of Fixed deposit information is mentioned on the FD receipt. 
  6. Nomination details: The FDR contains the details of nomination details which includes the nominee's name if any. A nominee is a person who is entitled to receive the FD amount in case of the demise of the applicant. 
  7. Charges on premature withdrawal: The bank will charge a penalty if the account holder withdraws the Fixed deposit amount before the maturity date. The charges on the fixed deposit should be mentioned on the FD receipt. 
  8. Auto-renewal: Investors must check if the bank provides an auto-renewal facility upon maturity of the fixed deposit. If the account holder has opted for auto-renewal of FD, the fixed deposit receipt date along with auto-renewable time should be mentioned on the FDR. 

Factors to Check Your FD Receipt Number

  1. Interest rate and tenure of the fixed deposit: Investors should cross-check the interest rate and tenure of the fixed deposit because interest rate changes from time to time and banks may stop the old rate of interest on fixed deposit schemes without giving any prior notice. Make sure to check these details, especially while renewing an old fixed deposit. 
  2. Maturity date: Investors must check the maturity date mentioned on the Fixed deposit receipt to address certain goals. It helps you to plan to use the amount for a specific purpose for fulfilling certain purposes such as children's education or marriage. 
  3. Auto-renewal date: If an individual is earning a fixed income every month, he or she can opt for auto-renewal of her fixed deposit. So, make sure to check the auto-renewal date mentioned in the FD receipt. 
  4. Charges: Banks charge a certain charge if the account holder has withdrawn the fixed deposit before the maturity date. The deposit receipt must contain the charges or penalties. 
  5. Nomination: The nomination details are mentioned in the FD receipt and it is important to check whether the names mentioned in the receipt are correct or not. A nominee is a person who receives the principal amount along with interest earned on a fixed deposit in case of the demise of the account holder. 
  6. Declaration to save TDS: The bank deducts TDS if the interest earned on a fixed deposit exceeds INR 40,000 (INR 50,000 for senior citizens). However, you can avoid paying TDS by submitting forms 15 G or 15 H if you fall under the 'No Income Tax bracket. Make sure that this information is mentioned in the FDR. 

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To conclude, fixed deposit receipts are important documents that act as evidence for investors that they have invested in a fixed deposit from a specific bank or post office. Fixed deposits are the most secured investment as they provide guaranteed and fixed rates of interest. Investors can avail of loan benefits against their Fixed deposit at low-interest rates. However, you must keep in mind to ask for a fixed deposit receipt while making an FD investment in a bank or post office. 

  • What is FDR full form in banking?

  • What is FDR?

  • What happens if I misplace my FD receipt?

  • When do banks provide fixed deposit receipts?

  • How to check if the fixed deposit receipt is real or fake?