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What Are Fixed Deposit Receipts? What Are Its Major Components?
Posted on Thursday, October 26th, 2023 | By IndusInd Bank
Fixed deposit receipts serve as proof of your investment. They contain crucial information pertinent to your investment and are essential for tax filing purposes or claiming tax benefits.
Fixed deposits(FDs) are a top choice for investors worldwide, particularly for those seeking a safe and reliable means to grow their savings. These financial instruments offer a fixed interest rate for a predetermined period, typically ranging from a few days to several years. FDs ensure investors a guaranteed return on their initial investment. After depositing money in an FD account, the bank issues a fixed deposit receipt in the account holder’s name. It is a key document pertaining to FD investments that includes vital information every investor needs to be aware of. Keep reading to discover the importance of fixed deposit receipts and their key components.
What Is a Fixed Deposit Receipt?
A fixed deposit receipt is an official document provided by a bank or financial institution when you invest in an FD account. This document serves as a record of your investment and holds essential information, including your name, account number, and details about the FD scheme you have chosen. This receipt helps you keep track of your FD investments and evaluate their performance over time. It might be useful for filing taxes or claiming tax benefits.
Components Of a Fixed Deposit Receipt
The key components of a fixed deposit receipt are as follows:
- Account Holder’s Name: The fixed deposit receipt displays the full name of the account holder.
- Account Number: Each fixed deposit receipt is assigned a unique account number, which facilitates the tracking and management of the investment.
- Deposit Amount: This is the initial principal sum invested in an FD.
- Tenure: This refers to the duration of the FD investment, which can range from a few days to several years.
- Interest Rate: This is the applicable FD interest rate, which determines the growth of the funds over time.
- Maturity Amount: This represents the total amount, including both the principal and the accrued interest which you shall receive on the FD’s maturity.
- Maturity Date: This is the specific date on which the FD matures, and the account holder becomes eligible to receive both the principal and accrued interest.
Important Factors to Check in A Fixed Deposit Receipt
When you receive a fixed deposit receipt, check the following things:
| Auto-Renewal | Set up auto-renewal for your FD if you have a steady monthly income. This can save you time and hassle when the time comes to renew your FD. |
| Nominee Details | Ensure that your receipt includes all the information about your nominee. In case something unfortunate happens to you, your nominee would be eligible to collect the FD amount. |
| Early Withdrawal Penalties | Keep in mind that some banks may impose a fee if you decide to withdraw your FD before it matures, or within a specified timeframe. Check your receipt carefully to see if any such penalties are mentioned. |
| Declaration to Save TDS | If your interest income exceeds INR 10,000, the bank will deduct TDS. If you fall under the ‘no income tax’ bracket, submit Form 15G or Form 15H, and ensure that it is mentioned in your receipt. |
Book An FD With IndusInd Bank
Here are some compelling reasons why you might consider opening an FD account with IndusInd Bank:
- Book your FD online in three simple steps
- Start with a minimum investment of INR 10,000
- Get competitive interest rates starting at 7.50%
- Choose a flexible tenure from 7 days to 10 years
- Save on taxes with a 5-year FD
- Auto-renewal option on maturity
- Flexible interest payments – monthly, quarterly, half-yearly, yearly or at maturity
- Instant video-KYC for hassle-free booking
Open an FD online with IndusInd Bank and watch your savings grow with time. Book now!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
