What Documentation is Required for Fixed Deposits?

Deposit

Fixed deposits are among the most popular investment tools in India. You can make a lump sum deposit for periods ranging from 7 days to 10 years, and earn higher interest than you would from a savings account. One of the reasons for the high popularity of FD investment is easy accessibility. Let us look at the documents required for fixed deposit:

  1. Proof of identity: This could be one among:
    1. Aadhar card
    2. Passport
    3. Driving license
    4. Voter’s ID
    5. NREGA job card
  • Have to submit a self-attested copy of the document of your choice along with the application for FD.
  1. Proof of address: This could be one among:
    1. Aadhar card
    2. Passport
    3. Driving license
    4. Voter’s ID
    5. Utility bills
    6. Property receipts
    7. Bank account statement
  • Have to submit a self-attest copy of the document of your choice along with the application for FD.
  1. Proof of signature: Some banks/ NBFCs require that you submit a document to verify your signature against. This is usually the case if you are not already a customer of the bank/ NBFC. For this, you can submit a copy of the passport, PAN card or driving license.

Eligibility for making an FD investment

Other than the documents required for the fixed deposit listed above, you will also have to meet the general eligibility criteria to open a fixed deposit. You must be one of the following:

  1. Indian resident: Guidelines from the RBI state that any individual who is an Indian citizen and resides in India can open an FD. This means NRIs and foreign citizens are not allowed to open an FD.
  2. Hindu undivided family: A legally acknowledges HUF can make an FD investment.
  3. Sole proprietorship, partnership or other organization: Fixed deposit schemes are open to all sole proprietorships, partnerships, and companies including group companies that are officially registered with the Government of India as such.
  4. Club or other association: All clubs, societies, and associations recognized by the Government of India as such are also eligible to open a fixed deposit.
  5. Family trust: Family trusts are eligible to invest in fixed deposit schemes. Remember that this option is not available to charitable trusts.

As shown above, fulfilling the eligibility criteria and document requirement for fixed deposit are easy. Fixed deposits offer a low-risk fixed return and can be a great tool to balance your portfolio. They are the preferred investment instrument for a lot of retirees and people reaching close to their financial goals. The reason for this is simple: your principle invested in FD is safe compared to most other instruments.

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