Did you know that opening a Fixed Deposit (FD) is a quick and easy process? You must submit a few documents for opening an FD. Submitting your KYC (Know Your Customer) documents to a bank or a Non-Banking Financial Company (NBFC) is the key to streamlining the application.

Documents are essential as they are the deciding factor in processing your investment schemes. KYC documents are necessary for any bank or NBFC to verify your identity

Eligibility to Open a Fixed Deposit:

Eligibility criteria to open an FD states that you need to be over 18 years of age and should be a citizen of India. The other entities that can open an FD in India include partnership firms, companies, unincorporated associations, Hindu Undivided Families (HUF), trusts and foundations.

Documents Required to Open an FD:

Proof of address and identity are the primary documents to open a fixed deposit. The financial institution may ask you for more than one copy to verify this information according to the type of deposit you are opening. Listed below are the documents typically needed:

For Individuals:

ID Proof:

• Passport
• PAN Card
• Driving License
• Voter ID
• Aadhaar Card
• NREGA Job Card
  
  Address Proof:
• Driving License
• Passport
• Aadhaar Card
• Property/Municipal Tax Receipt
• Electricity, Telephone or any utility bill

  For Partnership Firms:

• Registration Certificate
• Partnership Deed
• Authorised Signatory List
• Proof of identity and address of the authorised signatory

  For a Company:

• Certificate of Incorporation
• Memorandum and Articles of Association
• PAN (Permanent Account Number) copy of the company
• A resolution from the Board of Directors and power of attorney
• Proof of identity and address of the company's authorised signatory signing the application

  For Trusts/Foundations:

• Registration Certificate
• Trust Deed
• Authorised Signatory List
• Proof of identity and address of the authorised signatory of the trust/foundation signing the application

  For Unincorporated Association:

• Resolution of the Managing Body
• Power of attorney
• Proof of identity and address of the person holding a power of attorney to transact the business on behalf of the Unincorporated Association

Benefits and Features of a Fixed Deposit:

You need to invest a lump sum of money for a fixed tenure to open an FD. You have the choice of receiving the interest earned periodically or once upon the deposit's maturity. Here are some of the benefits and features of a fixed deposit you need to know:

• Predictable Returns

  Fixed deposits offer predetermined interest rates for the selected tenure. If held until maturity and subject to the issuer’s terms, the principal and applicable interest are paid as per the agreement.

• Rate of Interest:

The interest rate of a fixed deposit depends on the tenure you select and the financial institution you are investing with.

• Flexible Tenure:

  You can select a tenure usually ranging from 12 months to 5 years*. Premature withdrawal may be permitted subject to applicable terms and interest adjustments.

• Loan against an FD:

A unique feature of an FD is that you can apply for a loan against FD in case of emergencies. However, this feature will only allow you to take a loan up to a certain percentage of your investment amount, as decided by the financial institution.

Conclusion:

Having the correct documents ready can help streamline the FD application process. Most banks and NBFCs require valid identity and address proof for verification.

Once the required documentation is submitted and verified, the financial institution processes the deposit as per its internal procedures.

If you are considering a fixed deposit, you can explore the FD options offered by Shriram Finance and review the applicable documentation and eligibility requirements before applying.

FAQs

Is KYC required for a fixed deposit?

Yes. KYC is mandatory as per regulatory norms. If you have already completed KYC with the same institution, you may not need to repeat the full process, subject to their policy.

What documents are required for a Shriram Fixed Deposit?

Identity proof and address proof are the main documents usually required to open a fixed deposit with Shriram Finance.

Is a PAN card required for a Fixed Deposit?

PAN is generally required for financial transactions as per income tax regulations. If PAN is not available, Form 60 may be required, subject to applicable rules.

Can I open an FD without visiting the branch?

Many institutions offer online application facilities, subject to digital KYC and documentation requirements.