The popularity of fixed deposit (FD) investments in India can be owed to a few other features besides their overall stability and their guarantee of returns – they offer the premature withdrawal feature and also help customers avail a loan against FD. When a customer approaches the bank with a premature withdrawal or loan against FD request, the bank requests them to provide their FDR or Fixed Deposit Receipt. Banks offer fixed deposit receipts to customers after they book FDs with them. It is now extremely convenient for a customer to sign up for a high-interest FD – IndusInd Bank, for instance, helps customers book FDs directly through its mobile banking app – however, customers must also know the details of FDRs to learn more about their FD investments.
Table of Contents
What are the components of a fixed deposit receipt or FDR, and what is its format?
An FDR, also called a Fixed Deposit certificate, has these important components:
Fixed deposit’s type and interest rate:
Fixed deposit accounts come in two main types – cumulative and non-cumulative. A customer’s Fixed Deposit Receipt contains the type of their FD. Furthermore, it also contains the FD’s interest rate. FD depositors must check the current interest rate of their FD in their FDR before renewing it at the end of the FD’s term, since the interest rate is subject to change at the discretion of the bank at the time of renewal.
Maturity date and auto renewal details:
Customers can also check the FD’s maturity date on their Fixed Deposit Certificate to withdraw their amount at the right time. The FDR also contains the details of auto renewal if the customer has chosen that option. After choosing the renewal option, the customer is assigned an auto renewal time on the FDR. Customers must check this detail as well after signing up for their FD.
FD’s charges:
In the event of the customer withdrawing their FD amount prematurely, the bank may levy a penalty, whose details are mentioned in the FDR. Furthermore, any other instances of the bank penalising the customer due to any other reason is mentioned in it.
Nominee details:
Banks and financial institutions generally offer the option of nomination for their FDs. When customers identify a nominee, all the details of the nominee are included in the FDR. A nominee is the person who receives the FD’s amount in the event of the passing of the FD’s depositor. The depositor must check this detail in the FD certificate and must ensure that the details of the nominee are reflected correctly.
The maturity amount:
The Fixed Deposit Receipt also contains all the details that concern FD maturity. These details include the maturity amount of the FD, the maturity date, and the interest rate of the FD. The FDR also reflects the interest amount that the investor will receive when the FD matures.
Depositor’s details:
After opening an FD account, the depositor is assigned a customer ID and account number. The FDR also contains these important details of the customer.
The Fixed Deposit Receipt contains important details about a depositor’s FD and acts as a proof of investment for the depositor. The bank requires the depositor to produce this document in the event of a premature withdrawal or a loan against FD request. The customer must keep assessing their FD certificates to ensure that they reflect the correct details.
