What are the Documents Required for Investing Fixed Deposits?

  • Deposit
  • 5 Days ago

Written by - Shriram

Did you know that opening a Fixed Deposit (FD) is a quick and easy process? You must submit a few documents if you already have an online banking account. Submitting your KYC (Know Your Customer) documents to a bank or a Non-Banking Financial Company (NBFC) is the key to streamlining the application. 

Documents are essential as they are the deciding factor in processing your investment schemes. Typically for a fixed deposit, you only require a few additional documents if you already have a savings account with a bank or an NBFC. KYC documents are necessary for any bank or NBFC to verify your identity.

With a Shriram Fixed Deposit, you can quickly open a fixed deposit account online by providing a few documents. The company also offers auto-renewal and auto-refund options during the creation of the FD. To help you start your investment journey, we have compiled a complete list of documents you will need while opening an FD.

Eligibility to Open a Fixed Deposit:

Eligibility criteria to open an FD states that you need to be over 18 years of age and should be a citizen of India. The other entities that can open an FD in India include partnership firms, companies, unincorporated associations, Hindu Undivided Families (HUF), trusts and foundations.

Documents Required to Open an FD:

Proof of address and identity are the primary documents to open a fixed deposit . The bank may ask you for multiple copies to verify this information according to the type of deposit you are opening. It would help if you remembered to carry a few passport-size photographs with the documents. Listed below are the documents needed to prepare:

For Individuals:

ID Proof:
  • Passport
  • PAN Card
  • Driving License
  • Voter ID
  • Aadhaar Card
  • NREGA Job Card
Address Proof:
  • Driving License
  • Passport
  • Aadhaar Card
  • Property/Municipal Tax Receipt
  • Electricity, Telephone or any utility bill
For Partnership Firms:
  • Registration Certificate
  • Partnership Deed
  • Authorised Signatory List
  • Proof of identity and address of the authorised signatory
For a Company:
  • Certificate of Incorporation
  • Memorandum and Articles of Association
  • PAN (Permanent Account Number) copy of the company
  • A resolution from the Board of Directors and power of attorney
  • Proof of identity and address of the company's authorised signatory signing the application
For Trusts/Foundations:
  • Registration Certificate
  • Trust Deed
  • Authorised Signatory List
  • Proof of identity and address of the authorised signatory of the trust/foundation signing the application
For Unincorporated Association:
  • Resolution of the Managing Body
  • Power of attorney
  • Proof of identity and address of the person holding a power of attorney to transact the business on behalf of the Unincorporated Association

Benefits and Features of a Fixed Deposit:

You need to invest a lump sum of money for a fixed tenure to open an FD. You have the choice of receiving the interest earned periodically or once upon the deposit's maturity. Here are some of the benefits and features of a fixed deposit you need to know:

  • Assured Returns: 

With any type of FD scheme, the returns are always guaranteed. You will get the principal amount you invested and the interest earned upon maturity of the deposit. Market fluctuations will not impact your funds, and any revisions to the interest rates are implemented after maturity or at the renewal of the deposit.

  • Rate of Interest: 

The interest rate of a fixed deposit depends on the tenure you select and the financial institution you are investing with. Check the interest rate you receive using the Shriram FD calculator

  • Flexible Tenure:

You can select a tenure ranging from 7 days to 10 years. You can always withdraw/close your deposit account during this term, but you will be charged a penalty fee for premature withdrawal.

  • Returns on Investment:

The interest you earn on an FD depends on the maturity period of the deposit. The longer the tenure of the deposit, the better the interest rate. You can also opt for a non-cumulative FD wherein you will receive the interest amount periodically.

  • Loan against an FD:

A unique feature of an FD is that you can apply for a loan against FD in case of emergencies. However, this feature will only allow you to take a loan up to 90% of your investment amount. Also, you will not be permitted to withdraw the FD amount if you have applied for a loan.

Read more: A Complete Guide to Get a Loan Against an FD

Steps to Open a Fixed Deposit:

A new fixed deposit is a few clicks away if you already have a net banking account. If you don't have access to the internet, you can always visit the bank/NBFC branch nearest to you. Shriram Fixed Deposit is rated "IND AA+/Stable" by India Ratings and Research, indicating high safety. Here are the steps to quickly start a new fixed deposit:

Step 1: Select the bank/NBFC with whom you want to start your fixed deposit account. Visit the bank/NBFC branch or website and apply for a fixed deposit.

Step 2: Fill in all the details and submit KYC documents like identity proof, address proof and bank account details.

Step 3: Post KYC verification, the bank/NBFC will create your new FD account.

Read more: How to Open a Fixed Deposit Account Online with Shriram

Conclusion:

  • Having the right documents to open an FD will help streamline the process.

  • All banks and NBFCs require you to submit your identity and address proof documents and passport-size photographs.

  • Once the financial institution receives the documents, it will take them no time to start your fixed deposit.

With such a simple process, don't hesitate to open an FD now and grab the opportunity to invest in one of the most secure deposits. A Shriram Fixed deposit will give you one of the highest interest rates of up to 8.40% per annum, including a bonus of 0.50% interest for senior citizens. 

FAQs

  1. Is KYC required for a fixed deposit?

If you have already completed your KYC with the financial institution of your choice for a savings account, you will not have to repeat the process. But it is essential to carry the documents if they are asked for.

  1. What documents are required for a Shriram fixed deposit?

Identity proof and address proof are the documents required to open a fixed deposit with Shriram. 

  1. Is a PAN card required for a fixed deposit?

A PAN card can serve as an identity and address proof, making it one of the best documents to submit while applying for an FD.

  1. Can I deposit Rs. 3 lakhs to a savings account without having a PAN card?

Yes, you can deposit any amount under Rs. 3 lakhs to savings account without having a PAN card. However, if your deposit/withdrawal exceeds Rs. 20 lakhs, you must have your PAN or Aadhaar card linked to the account.

Key Highlights:

  • An FD can be opened quickly through online banking.

  • You can streamline the offline FD application process by keeping your KYC documents handy.

  • If your KYC has already been done, you won't have to submit any extra documents to open an FD.

  • You can get guaranteed returns with a fixed deposit account.