What is Fixed Deposit Receipt: Components & Benefits

What is Fixed Deposit Receipt: Components & Benefits

Jun 18, 2024

15 Mins

A Fixed Deposit Receipt (FDR) is a document that is given by the bank or company to the depositor on booking a fixed deposit. It serves as proof that the depositor has kept a certain amount for a specified time period at the prevailing fixed rate of interest locked in the bank.

The receipt contains important details about the fixed deposit, including the declaration by the bank, name, and age of the depositor, account number linked to the FD, total amount deposited (principal amount), tenure/term of the deposit, the applicable rate of interest, booking date, maturity date, interest that the depositor will get on maturity, nominee, and deposit and scheme-related instructions.

The FDR is used for various purposes such as renewal, premature withdrawal, and loan against FD. It is important to keep the FDR safe and secure as it acts as proof of ownership. Nowadays, with the availability of online banking services, FDs can be opened and managed online, with access to online FDRs through internet banking services. In case of a fake FDR or loss/misplacement of the FDR, the depositor can seek assistance from the nearest bank branch or customer care team.

Fixed deposits offer various benefits such as flexible tenure, guaranteed returns, insurance by RBI subsidiary, multiple interest payout options, premature withdrawal, and nomination facilities. Factors to check in an FDR include applicable rate of interest and deposit term, maturity and auto-renewal dates, penalties and charges, and nomination details. Overall, fixed deposits are a popular investment option due to their security and attractive returns.

A Fixed Deposit Receipt (FDR) is a document that is given by the bank or company to the depositor on booking a fixed deposit. It serves as proof that the depositor has kept a certain amount for a specified time period at the prevailing fixed rate of interest locked in the bank.

The receipt contains important details about the fixed deposit, including the declaration by the bank, name, and age of the depositor, account number linked to the FD, total amount deposited (principal amount), tenure/term of the deposit, the applicable rate of interest, booking date, maturity date, interest that the depositor will get on maturity, nominee, and deposit and scheme-related instructions.

The FDR is used for various purposes such as renewal, premature withdrawal, and loan against FD. It is important to keep the FDR safe and secure as it acts as proof of ownership. Nowadays, with the availability of online banking services, FDs can be opened and managed online, with access to online FDRs through internet banking services. In case of a fake FDR or loss/misplacement of the FDR, the depositor can seek assistance from the nearest bank branch or customer care team.

Fixed deposits offer various benefits such as flexible tenure, guaranteed returns, insurance by RBI subsidiary, multiple interest payout options, premature withdrawal, and nomination facilities. Factors to check in an FDR include applicable rate of interest and deposit term, maturity and auto-renewal dates, penalties and charges, and nomination details. Overall, fixed deposits are a popular investment option due to their security and attractive returns.

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