How to open an FD

FD can be opened in any bank
You can open a fixed deposit in any bank public sector, private sector or co-operative bank. You can open it in a bank even if you don't have a savings bank account in that bank. You will have to submit documents for identity and resident proof.

Single or joint name
FD can be opened in a single or joint name. It can also be opened in the name of a Hindu Undivided Family. It can be opened in the name of a minor too, with an adult as the joint holder.

Nominee is important

If the FD is in a single name, it is advisable to be in the nominee's name. In case of the death of the account holder, the nominee will receive the money from the FD when it matures. Today most banks have made it mandatory for depositors to give a nominee's name while opening an FD. This avoids any legal disputes among heirs of the deposit holder and makes it easier for banks to trace the account holder. The nominee can be changed mid-way if the depositor wishes.

Online account opening
Today banks allow you to open FD online through net banking. This will be possible only if you already have a savings bank account. Once you open the FD the bank will send the FD receipt to your postal address. The receipt will mention the principal amount, contracted interest rate, date of maturity and amount at the time of maturity.