How to Invest in a Fixed Deposit (FD) Online – Process Guide

Start by logging into your bank account through internet banking or mobile banking app using your username and password. If you don’t have an online banking account yet, you will need to register first.

This is usually found under the “Deposits” or “Investments” menu.

Most banks offer different types of FDs, such as,

• Regular Fixed Deposit
• Tax-Saving FD
• Senior Citizen FD
• Recurring Deposit (RD) – not an FD but often listed in the same section

Select the FD type that best suits your needs. For example, if you want higher interest rates and are a senior citizen, choose a Senior Citizen FD.

Next, enter how much money you want to invest. Most banks have a minimum limit (for example, ₹ 5000 and there is usually no maximum limit.

Tenure is the duration for which you want to keep your money locked in the FD. It usually ranges from 7 days to 10 years, depending on the bank. Your interest rate depends on the tenure, so choose carefully based on your financial needs.

Banks generally offer two interest options

• Cumulative FD – Interest is added to the principal and paid at maturity.
• Non-cumulative FD – Interest is paid periodically (monthly, quarterly or annually).

If you want regular income, choose non-cumulative. If you want compounded returns, choose cumulative.

Choose the savings account from which the FD amount will be deducted. Make sure you have sufficient balance.

Before submitting, review all the details, including,

• Deposit amount
• Tenure
• Interest rate
• Maturity date
• Payout option

Once everything looks correct, click on Confirm or Submit.

The bank will generate an FD receipt or confirmation letter. Download it or take a screenshot for your records. The bank will also send an email with an FD certificate. If you need a physical copy of the FD certificate, you can visit the bank branch and get it. You can view your FD anytime in the ‘Deposits’ section.