FDR or a Fixed Deposit Receipt is a document which is given by the bank or the company to the depositor on booking a fixed deposit. Just like a shopkeeper gives bill (invoice) on buying something from the shop, FDR is also like a bill in which all the important details about the fixed deposit made are mentioned.
Contents of an FDR
A Fixed Deposit Receipt is proof that the depositor has kept a certain amount for a specified time period at the prevailing fixed rate of interest locked in the bank. This receipt or document contains every single detail of the scheme. The contents of the Fixed Deposit Receipt have been mentioned below:
- Declaration by the bank
- Name and age of the depositor
- Account number linked to the FD
- Total amount deposited (Principal amount)
- Tenure/Term of the deposit
- The applicable rate of interest on the deposit
- Booking date
- Maturity date
- Interest that the depositor will get on maturity
- Deposit and scheme related instructions*
*Penalty rates, instructions regarding loan against FD, etc.
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This receipt acts as proof of ownership. Since the FDR is so important, the depositor must keep it safely and securely.
What is FDR used for?
Fixed Deposit Receipt (FDR) can be asked by the bank at various occasions like:
- At the time of renewal – In case of an offline FD, the depositor may be asked by the bank to surrender the FDR so that the existing FD can be renewed for a new tenure and a new receipt be issued.
- For premature withdrawal – In case the depositor wishes to withdraw funds before the maturity date, they will be required to produce FDR as the proof of ownership.
- To get a loan against FD – To address a cash crunch, depositors can apply for a loan against their fixed deposit at lower interest rates than an unsecured loan. To do so, they are required to deposit the FDR as a lien to the bank for the term of the loan. Once the loan is repaid, FDR is returned to the depositor with the updated details.
Factors to Check in a Fixed Deposit Receipt
Fixed Deposits, also known as term deposits in banking parlance, work on some factors which should be checked to understand the terms at which one’s FD will perform. These factors are:
- Applicable Rate of Interest and Deposit Term: These are the basic things to look for in an FD receipt and it is always better to double-check the details i.e. the applicable rate of interest and the maturity term of the scheme, especially at the time of renewal of an old fixed deposit.
It is because the rate of interest is subject to change from time-to-time without any prior notice and it may be possible that the previous interest rate is different than the one offered at the time of renewal.
- Maturity and Auto-Renewal Dates: The maturity date of the scheme is always mentioned on the deposit receipt. To address certain goals like aiding for higher education, it is extremely important to check the date of maturity so that the amount can be accessed at the right time. Otherwise, one may have to opt for premature withdrawal and lose on some interest.
Moreover, if the depositor has opted for the auto-renewal facility, they must not forget to check the time of auto-renewal on the Fixed Deposit Receipt date.
- Penalties and Charges: Some banks charge a certain amount as a penalty if the deposit is withdrawn by the depositor before the maturity of the FD or a specified time period. If there is any sort of penalty on the same, it should be on the receipt.
The charges for premature withdrawal may differ from one bank or company to another and must always be squared with to avoid any confusion later.
- Nomination Details: Nominee is the person who will get the FD amount (principal + interest earned) in case something unfortunate happens to the depositor. Therefore, it is important to check this particular detail to ensure the right name is mentioned in it.
In old times, when the use of the internet wasn’t as rampant, such receipts were the only form of proof of ownership and had to be kept safe. However, nowadays since everything is getting digital, entire information regarding a person’s bank account is available online. FDs can be opened online and linked to an existing bank account. Such FDs then come with online FDR that can easily be accessed using the respective bank’s internet banking services. Thus, for those who have opted for online booking of a fixed deposit account, their receipt is available online but for those who have taken the offline route, they should always keep their FD, in hard copy, safe to be produced anytime.
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Frequently Asked Questions (FAQs)
Is there a way to identify the fake Fixed Deposit Receipt?
Yes. Sometimes a fake receipt in the name of the depositor may be generated. Since the Fixed Deposit Receipt format can help one handle the situation, visit the nearest branch and ask for help or simply call the customer care team of the bank to seek assistance regarding the same.
What is the process to get the payment if the deposit or misplaced or lost the fixed deposit receipt?
In general, the banks usually ask for a written application with details about the fixed deposit. In fact, the depositor can also apply for a duplicate receipt of their fixed deposit.
Some banks may also ask you to provide certain documents to process your request. The process might differ from one bank to another. So, it is good to visit the branch or call the customer care representative for help.
What is the process to get a fixed deposit receipt back?
To get the duplicate fixed deposit receipt, the depositor or the investor has to submit a written request stating the circumstances to the bank.
Some banks may also need an indemnity bond to issue the duplicate receipt. In fact, some charges may also be levied by the bank. Hence, it is better to visit the branch to know more about the same.
What are the benefits of fixed deposits?
Fixed deposit schemes offer a number of benefits to the depositor. Some of them have been listed here:
- Flexible tenure
- Guaranteed returns
- Insurance of Rs. 5 lakh by RBI subsidiary, if the bank defaults
- Multiple interest payout options (monthly, quarterly, bi-annually and annually)
- Premature withdrawal and nomination facilities
- Extra rate of interest (0.25%- 0.75% approx.) for senior citizens, aged 60 years or above
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