Crucial Documentation Required to Open a Fixed Deposit

Opening a Fixed Deposit is an ideal investment for risk-averse investors, which keeps their Principal amount safely deposited and helps them earn interest over some time. You can open a Fixed deposit account for a minimum of 7 days and a maximum of 10 years. 

Higher interest rates are offered to older people in the range of 0.25% to 0.65% higher than the original rates.  

Current FD interest rates on a fixed deposit range from 3% (investments made for a year) to 9.54% p.a. (for FDs up to 10 years, depending on whether the institution that keeps your FD is in the public or private sector or is a small finance bank).

Opening a Fixed Deposit is a relatively straightforward process, but there are some steps you need to follow. You can make an online or an offline Fixed Deposit after submitting a list of documents. 

Here we will cover the various kinds of documents that are required to open a PNB FD account. 

Failure to submit these documents or to submit expired/lost documents may interfere with opening an FD account. 

Documents Required For Fixed Deposit

Fixed Deposits can be opened by individuals and any public/private limited companies, Hindu undivided families, partnership companies, legal entities, statutory board/local governments, or trust companies.

Basic Documents You Need To Submit

• Identity Proof – You can submit a Passport, PAN card, Voter ID card, Driving license, Government ID card, Photo ration card, or Senior citizen ID card
• Address Proof – Passport, Telephone bill, Electricity bill, Bank Statement with Cheque, Certificate/ID card issued by Post office, any other proof or document subject to the bank’s satisfaction.

Here is a list of the documents that these specific people are entities need to submit before opening a fixed deposit account:

For Existing Customers

Existing customers of a bank or a financial institution already have their details registered with them. So, not much is required from them. 

If you are an existing customer, you simply need to submit your recent pictures (passport-sized) and a copy of your KYC documents. If there is any modification in your address or phone number, you must notify your bank about the same.

For New Customers

Here is a list of documents you must submit if you are a new customer trying to open an FD account

For Individuals – 

• Passport size photographs
• Documents regarding KYC verification- AADHAR card, Driving license, Passport, PAN card, Voter ID card 

For Public/Private Limited Company – 

• Company PAN card
• KYC of authorized signatories along with each of their passport size pictures
• Registration or incorporation certificates
• Board resolution for FD opening Bank account statement
• Latest telephone or electricity bill

For Hindu Undivided Family (HUF) –

• HUF deed and declaration
• Passport size photographs
• PAN card and KYC documents

For Partnership firms – 

• PAN Card along with other KYC documents and recent passport-sized pictures of all the authorized signatories
• Partnership deed and the Registration certificate

For Registered Societies – 

• PAN Card along with all KYC documents plus passport-sized pictures of all the authorized signatories
• Board resolution for FD account opening
• Bank account statement
• Articles and MOA – memorandum of association 
• Latest telephone or electricity bill
• Certificate of registration or incorporation

Some Important Things To Remember

1. Make sure when asked, you present the original documents for verification and submit a duplicate of each document asked for
2. While filling out the form for opening a PNB FD account, you must ensure that you use a black pen and fill out all details correctly, preferably in capital letters, to make the content more understandable.
3. In case of overwriting on the form, you must either replace it and fill a new form or countersign the underwriting to validate it.
4. You must always fill the nomination for your fixed deposit
5. It is substantial to fill in your permanent address and telephone number in the form.

Conclusion

Among the many ways to open an FD account (banks and financial institutions), you can compare various financial institutions and banks and look for the easiest, safest, and most convenient way of opening a fresh Fixed deposit account. 

Many offer a paperless procedure, so you can take advantage of the online application process and enjoy various benefits such as higher interest rates, no penalty for monetizing the FD amount by the due date, and automatic rollover. 

Fixed deposit accounts are considered ideal investments for people and corporations that are aversive to risks. The amount you have deposited will earn better interest rates over time, depending on the type of financial institution you have chosen. 

Discover everything you need to know and experience the most lucrative way to invest your money safely.