Opening a fixed deposit in the SBI
A fixed deposit account is the safest means through which an individual or a company benefits in the long term. The reason is that a fixed deposit attracts higher interest rate when compared with the traditional savings account. Therefore, opting for a fixed deposit is beneficiary for any individual. The digitalization is providing the convenience of opening the account right from home, office, or through a smartphone. All it requires is the knowledge in opening account using the online format after signing into the official website of the bank.
Why visit physically to open a fixed deposit account?
Visiting physically is only in the cases where the customers do not have an active account with SBI. In such circumstances, it becomes necessary to visit any nearby branch. However, the procedure is different in this case. For non-account holder, opening a fixed deposit account is possible by:
- Submitting a duly filled application form
- Submitting address proof
- Submitting a copy of PAN card
- Submitting an address proof
- One or two photographs
The application form consists of all the crucial details related to the account such as the amount and the tenure of the deposit. The interest rate changes according to the amount deposited and the period of deposit. Additionally, users also have the opportunity to select between the standard fixed deposit account and the tax saving account. The tax saving account is useful for those who wish to save tax. However, the minimum fixed tenure for the account is five years. Therefore, it is vital for anyone to consider several aspects before opting for such an account. Also, sbionline has some really good options for fixed deposits.
Opening the account online
An account holder with SBI possesses the login information. The user receives both ID and password from the bank. After initial registration, the account holder can switch to e-fixed deposit tab from the primary screen/interface.
Selecting the option will display three options – fixed deposit, fixed deposit under tax saving scheme, and fixed deposit with multi-operational mode. An individual can pick the right choice based on the requirement. Again, opting for tax saving account is not preferable for those who do not fall under the tax bracket.
After making the selection, in this case, fixed deposit, the interface will display all the savings account mapped with the user ID. The user can choose the account from which he/she would like to withdraw money to open the fixed deposit account. They can select the account and enter the value in the field provided.
Next, they can choose between cumulative and non-cumulative option. Cumulative is useful when the user wishes to enjoy the benefits at maturity. Non-cumulative delivers the opportunity of accumulation on a daily basis, and therefore, the user can close the account whenever they are in need of the money. It may not accumulate more substantial interest but provides flexibility.
The next step includes selection of the maturity period, which can be in days, months, and years. One can also select a preferred date. Click the submit button to verify the details and confirm using OTP to open the account.
The fixed deposit is active for the stated period, and the bank credits the amount along with the interest rate back to the initial account from which the user debited the amount.