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Definition and Nature

  • A digital fixed deposit is a fixed deposit account that can be opened and managed entirely online.
  • It eliminates the need to visit a bank branch for deposit initiation or servicing.
  • Offered by most public, private, and digital-only banks through mobile apps and internet banking.
  • Designed for convenience, speed, and paperless processing.
  • Suitable for tech-savvy users and investors seeking quick, secure investment options.

Account Opening Process

  • Customers log in to their bank’s digital platform using a registered account.
  • Choose the fixed deposit option, enter the amount, tenure, and interest payout preference.
  • The deposit is created instantly by debiting the linked savings account.
  • No physical documentation is required for existing KYC-compliant customers.
  • A digital receipt or confirmation is sent via SMS and email.

Features and Flexibility

  • Minimum deposit amounts are usually low, starting from ₹1,000.
  • Tenure ranges from a few days to several years, as per standard FD policies.
  • Interest is credited at maturity or at chosen intervals for non-cumulative options.
  • Auto-renewal, premature withdrawal, and reinvestment options are available digitally.
  • Some platforms offer partial withdrawals or overdrafts linked to digital FDs.

Benefits of Digital FDs

  • Instant creation with 24/7 availability via app or website.
  • Transparent display of interest rates and maturity values before booking.
  • Safe and encrypted processing ensures secure transactions.
  • Convenient tracking, renewal, and closure through mobile banking.
  • Paperless investment with minimal operational hassle.

Eligibility and Access

  • Available to existing bank account holders with verified KYC details.
  • Some banks allow new users to open digital FDs with e-KYC and Aadhaar verification.
  • Accessible through net banking, mobile banking, and fintech partner platforms.
  • NRIs, senior citizens, and minors may also open digital FDs depending on bank policy.
  • Digital FDs support both single and joint holdings based on digital consent.
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