Fixed deposits earn a higher rate of income than traditional saving schemes which is why they are such an attractive investment option. Most banks today offer online services for application of fixed deposits. Fixed deposits can be used to generate an extra source of income rather than letting your money stand idle in a simple savings account. In fact, many people use fixed deposits as a source of income provided you have enough funds.
Fixed deposits are one of the best investment options available right now since they do not suffer from market fluctuations unlike shares and mutual funds. The maturity amount will be known to you in advance so you can plan your investment accurately. You can let the principal amount with the bank and leave it with the bank again and again. You can easily use the interest as an extra source of income. Fixed deposits also get tax exemptions and you can save up to Rs. 100,000 on your taxes by investing in fixed deposits.
Benefits of applying online
You don’t have to visit the branch personally and can do it from the comfort of your home or office. You can easily transfer funds from your existing account with the bank into your fixed deposit account. You can easily decide the tenure, the amount you want to invest and can select the option for payment.
Some banks also provide a flexible scheme nowadays wherein you can let a fixed sum in your account and the remaining will get invested into a fixed deposit scheme. For example, let’s say your monthly income is Rs. 50,000 and out of that you want to keep Rs. 20,000 in your savings account and invest the same. You can ask the bank to invest the remaining 30,000 in fixed deposits each month so you don’t need to create a separate FD each month. Many banks such as Bank of Baroda provide such automated options for fixed deposit scheme.
Prerequisites for applying online for a fixed deposit scheme
First and foremost, you will need to have a bank account with the concerned bank in which you wish to create a new fixed deposit. Some banks let you operate the fixed deposit with the same online banking username and password while others provide a new one for the same. Check with your bank to know if you need new login details. You should also have sufficient funds in your account for opening a fixed deposit account. You can then simply apply for a fixed deposit online and the same will be mailed to you at your communication address once approved.
With the facility of online application, you can select the branch, tenure details and amount that you need to invest at the click of a button. Otherwise, you would need to visit the bank branch personally and fill up forms, then wait to collect the final document. So take advantage of the online application facility for fixed deposits and get a surplus income through your fixed deposits.
