Can I add money to an existing FD?

No, you cannot add money to an existing Fixed Deposit. However, some financial institutions allow you to add funds to an existing fixed deposit account to increase your investment.

Key features of the top-up facility include:

1. It allows investors to deposit additional funds in their existing FDs to boost their investment.
2. Instead of opening multiple FD accounts for different amounts, you can add funds to your existing FD, which simplifies your portfolio and tracking.
3. By adding more funds to your FD, you continue to earn interest at the prevailing rate, allowing you to benefit from the compounded returns.
4. The top-up facility saves you the time and paperwork required to open new FD accounts, making it a hassle-free process.
5. By topping up your FD, you increase the total corpus earning interest, thereby maximising the returns on your existing investment.
6. The top-up facility is usually available for certain tenures and can be requested multiple times during the life of the FD, depending on the financial institution’s policies.