Fixed Deposits (FDs) are a highly reliable investment tool that allow you to park your money for a specified period and earn guaranteed returns on the amount. The amount of interest you earn through your fixed deposit will depend on a few factors such as the tenure or duration of the FD, the interest rate offered by the bank, and whether you let the FD run its course or break it prematurely.
All the crucial details regarding your fixed deposit investment can be found on the fixed deposit receipt that you will receive from the bank after opening up a fixed deposit account. In this article, let us take a look at what a fixed deposit receipt is and what its functions are.
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What is an FDR?
The FDR full form is fixed deposit receipt, and it is an official document that is given to the depositors by the bank or financial institution upon the opening of a new fixed deposit. Like how a grocery store gives buyers a formal bill of their purchases, the FDR is also a type of bill/receipt that the bank offers to the depositors when they open a new fixed deposit.
All the necessary details about the fixed deposit are included in the fixed deposit receipt. In case there is any misunderstanding with the bank regarding the FD or any other error, the depositor can simply show the FDR in the bank to clear doubts and get their issues resolved. The FDR is an incredibly important document, so if you plan to open an FD, make sure you get your FDR and check all the details for accuracy.
If you are looking to invest in a fixed deposit, you can do it by simply visiting the IndusInd Bank’s website or by downloading the mobile app. Some of the features of IndusInd Bank’s Fixed Deposits include:
● Instant online FD booking in three simple steps.
● Competitive FD interest rates compared to the industry standards.
● Ease of use options such as auto-renewal and multiple interest payment options
● Tax-saver FD to help you reduce your tax liability.
What does an FDR contain?
The fixed deposit receipt contains all the necessary information and legal details of the scheme. The contents of the fixed deposit receipts include:
● The investor/depositor’s name, age, and other details
● Details of the fixed deposit account linked to the depositor.
● The rate of interest that is applicable on the fixed deposit
● The duration or tenure of the fixed deposit
● The interest amount that the depositor will receive at the end of the FD tenure.
● The date of opening, as well as the date of maturity of the FD
● The amount of money (capital) invested in the fixed deposit account.
● Details regarding the nominees
● Details of penalties, and deductions in interest upon premature withdrawal of FD
Uses of the fixed deposit receipt
The bank may require you to provide your FDR during the following situations:
● At the time of renewing your fixed deposit upon maturity
● In case the investor wishes to withdraw their fixed deposit funds before maturity, i.e., premature withdrawal.
● In case the depositor wishes to acquire a loan against their fixed deposit
Key takeaways
If you are investing in a fixed deposit, ensure that you get an accurate fixed deposit receipt. It will help you to withdraw your funds when the need arises, and potentially take care of any issues that may come up. While most bank processes have become digitised and you will have all your FD details as a soft copy, it is still important to have the physical FDR document as proof of your investment.