For many, professional activities are the primary source of income. It could be for you too. You work tirelessly for career advancement. Your income increases as you grow in your career, but so do your needs and desires. Soley relying on your monthly income is a big mistake. You should look for other means of earning money, and investments are the most suitable option. They include incredible wealth-creation potential.
A Fixed Deposit is a go-to investment option for innumerable investors. You can consider it too. You deposit a significant amount at a competitive interest rate for a fixed period. You can invest with any leading bank. Typically, investing with a bank offering the highest interest rate is best as it translates to a higher Return on Investment. The bank provides an FD receipt as investment proof.
You receive the receipt via email and can access it on the Banking App. The following are the various components of an FD receipt:
Personal details
The FD receipt includes your details, such as name, age, and address. Your details should be as mentioned on your PAN or Aadhaar card. If it’s a Joint Account, the receipt includes details of both account holders.
FD Account number
The FD Account number is a unique identification number of your investment. You need to provide the number to carry out any transaction related to your investment. Hence, always keep it handy.
FD details
The receipt highlights the following investment details:
- Deposit amount – You can invest any amount starting from Rs. 5,000 in FDs. Typically, invest an amount within your financial capacity and align it with your investment goals
- Tenure – You can invest in FDs for a term ranging from a few months to years. Generally, consider investing for a longer tenure as it maximises interest earnings.
- Interest rates – The interest rate on FD is highlighted on the receipt. If you are a senior citizen investor, you can get a higher interest rate. Make sure you get it from the bank.
- Deposit date – It is the investment date. The tenure is counted from this date.
- Maturity date – It is the date on which your investment matures.
- Estimated maturity value – It is the total of your initial deposit and interest incurred. You can also calculate the maturity value within minutes using the FD calculator.
Deposit type
FDs are of two types: cumulative and non-cumulative. The interest incurred is clubbed with your initial deposit with the cumulative option. You receive your interest earnings periodically with the non-cumulative option. The receipt highlights the type of deposit you hold.
Nominee details
Your FD nominee details are mentioned on the receipt. If you have not added a nominee at the time of investment, you can always add it later. Nomination ensures that your loved ones are financially secure in case of your unfortunate death.
