I was told to bring fixed deposit receipt. Please tell me what is fixed deposit receipt?
A lot of Fixed Deposit investors, especially the new ones, get curious about what is a Fixed Deposit receipt and I am here to make its concept easier for you.
Suppose you have opened an FD account of ₹1,00,000 at 7% interest for 5 years. After the successful creation of your account, your FD provider will give you a Fixed Deposit receipt highlighting the following components:
| Details of the investor | Your name, basic details and contact information. |
|---|---|
| Linked account | Details of the linked savings or current account with the FD. |
| Principal amount | The amount with which you create the account. In this case, it is ₹1,00,000. |
| Rate of interest | The interest rate at which you booked the FD. For this example, it is 7%. |
| Tenure | Period of your FD investment. In this case, it is 5 years. |
| Booking and maturity | Date of the FD booking and its date of maturity. |
| Details of the nominee | Name and relationship of the nominee you choose. |
| Terms and Conditions | Institution-specific terms and conditions for premature withdrawal, option for renewal, interest payout modes, etc. |
I am also adding some of its benefits, such as:
- You can use it to claim loans, do premature withdrawals, etc.
- Use it to claim a tax deduction for tax-saver FDs.
- Your nominee can provide it to claim FD holdings, in case something happens to you.