What Is A Fixed Deposit Receipt ?

Fixed Deposits are a popular interest-generating instrument for those looking for security and safety of their capital deposit amounts, along with a regular, steady income. A Fixed Deposit is a sum of money deposited in a bank for a fixed period against which the holder gets a fixed interest rate. Here is an important point. After a Fixed Deposit is secured, the holder must insist on an FD advice or Fixed Deposit receipt.

After opening a Fixed Deposit, the holder receives a Fixed Deposit Advice (FDA) or a Fixed Deposit Receipt (FDR). This document is a vital record that carries all details of the Fixed Deposit and the holder's details. Simply put, an FDA provides proof of ownership to the holder. It also documents the nature of the FD, like whether it allows auto renewal and auto closure or whether there are nominations.

1. Name and Address

The FD advice or receipt includes the account holder's full name and permanent address, ensuring the account is correctly attributed to the individual.

2. Customer ID and Account Number

The bank assigns each Fixed Deposit account a unique account number and customer ID. These identifiers are crucial for managing and tracking the FD.

3. Deposit Type:

• Cumulative FD: Interest is compounded and paid out at regular intervals, such as monthly or quarterly, and is added to the principal amount.

• Non-Cumulative FD: Interest is paid out at specified intervals (e.g., monthly, quarterly, or annually) and does not get compounded.

4. Investment Details

The four critical pieces of information outlined are:

• Principal Amount: The initial sum deposited forms the basis for interest calculations.

• FD Tenure: The duration for which the FD is held, starting from the value date.

• Value Date: The date on which the FD was opened and interest calculations began.

• Maturity Date: The date on which the FD will mature, and the principal, along with interest, will be paid out.

5. Rate of Interest and Maturity Amount

• Rate of Interest: The annual interest rate applicable to the FD.

• Maturity Amount: The total amount payable at maturity, which includes the principal and the interest earned over the tenure of the FD. You can compute the maturity amount using FD calculator.

6. Nomination and Nominee Details

Details of any nominee registered with the FD, including the nominee's name and relationship to the account holder, are recorded. This ensures that the FD proceeds are transferred as per the account holder's wishes.

7. Auto-Renewal

The FD receipt specifies whether the FD is set to auto-renew upon maturity. Auto-renewal involves reinvesting the maturity amount for a similar tenure unless the account holder explicitly opts out. It is essential to review this feature, as premature withdrawal or cancellation might incur penalties.

8. Auto Closure

Indicates if the FD account will be automatically closed upon maturity, ensuring that the principal and interest are settled according to the terms.

9. Premature Withdrawal Penalty

The document outlines the penalties associated with withdrawing the FD before its maturity date, providing transparency on the financial implications of early withdrawal.

Have you created a Fixed Deposit asset today? Click here to get started.

Wondering if FD is a good investment? Click here to know more.

Create hassle-free Fixed Deposits with HDFC Bank Savings Account. New customers can create a Fixed Deposit by opening a new Savings Account, whereas existing HDFC Bank can create their Fixed Deposit by clicking here.​​​​​​​

​​​​​​​*Terms and Conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.