How to choose the right Online Fixed Deposit?

You need to consider multiple factors when it comes to choosing a suitable online Fixed Deposit account such as the FD interest rate offered, the amount to invest, as well as the type of FD. This article elaborates on an efficient procedure that you should follow to pick the right online Fixed Deposit in 2024.

Procedure to choose the right online Fixed Deposit account
 

Note down your investment goal, amount, and tenure

The first step of any investment exercise is noting down your investment goals. Doing so can help you be aware of the objective towards which your investments are geared based on which you can take better investment decisions. Here are some examples of investment goals – “I wish to save for an upcoming vacation,” “I want to save for my retirement after 20 years”, or “I want to save for my children’s education.” Fixing an objective will also help you decide on an online FD investment amount and its tenure.  

Conduct online research and prepare a shortlist

The second step involves multiple sub-steps within it. At this stage, you must conduct online research of the FDs that can help you meet your financial goals. You must prepare a shortlist of FDs by following these sub-steps:

o   Check the online Fixed Deposit interest rates offered by banks:

 A high-yield FD can help you considerably grow your wealth over time. IDFC FIRST Bank’s online FD accounts offer a competitive interest rate regular FD investors and a higher FD rate for senior citizens.

o   Compare returns using an online FD calculator:

An online Fixed Deposit calculator like the one on IDFC FIRST Bank’s website is a free online tool that can help you compare the returns offered by the FDs in your shortlist by the end of their tenures.

o   Understand the bank’s online FD application process:

You must also choose a bank that offers a convenient procedure to open online FDs. IDFC FIRST Bank’s digital FDcan be opened via a paperless online procedure through the IDFC FIRST Bank website. Customers can manage their FDs 24/7 through the mobile banking app.

o   Analyse the bank’s customer services and mobile banking services:

The fourth sub-step involves analysing the customer services offered by the bank. You must be able to resolve any issues with your FD at the earliest. In addition to this, you must also analyse the bank’s mobile banking services. IDFC FIRST Bank’s stellar customer service helps customers resolve any banking and investment-related issue 24/7 through the IDFC FIRST Bank mobile banking app. 

Narrow your shortlist down and decide on your preferred type of FD

After analysing these aspects, you can narrow your shortlist down to your most preferred FDs. The following two points will help you decide the right online fixed deposit for you. Here, you must also decide if you wish to opt for a cumulative FD or a non-cumulative one. A cumulative FD helps you earn returns on a monthly or quarterly basis whereas a non-cumulative FD pays you the returns all at once on maturity. You can also consider opting for IDFC FIRST Bank’s digital fixed deposit to get competitive interest rates as compared to other private banks. You can open this fixed deposit in just 3 steps within minutes, launched recently With this deposit solution, opening a  fixed deposit online has become simplified, efficient and faster than ever. The process is Aadhaar OTP-based and it doesn’t require  an IDFC FIRST Bank savings account linked to it.

Check the bank’s terms and conditions regarding premature withdrawals

Most individuals open an FD with the intention of not breaking it in any scenario. However, you might face an emergency, for which it is always important to factor in the scenario of a premature withdrawal. So, while booking your online fixed deposit account, you must carefully read through the conditions laid down by the bank regarding premature withdrawals.

Choose your preferred type of FD and opt for the auto-renewal option while investing

At this stage, you are ready to choose the best online fixed deposit account that can help you meet your financial goals. You must also consider another categorisation of FDs before investing. You can choose a tax-saving FD with a lock-in period of five years if you wish to do so. Do not forget to opt for the auto-renewal option while investing your money in an FD to ease your FD payments.

Choosing an online FD account can help you access your FD accounts more conveniently and manage them at any hour of the day. The IDFC FIRST Bank mobile banking app offers all-time access for online FD accounts. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.