Fixed Deposit Receipt
A Fixed Deposit Receipt (FDR) is a documentary proof issued by the bank, post the applicant opens a Fixed Deposit account from their bank.
FDR or a Fixed Deposit Receipt is a document that is given by the bank or the company to the depositor on booking a fixed deposit. Just like a shopkeeper gives a bill (invoice) on buying something from the shop, FDR is also like a bill in which all the important details about the fixed deposit made are mentioned.
After opening a Fixed Deposit, the holder receives a Fixed Deposit Advice (FDA) or a Fixed Deposit Receipt (FDR). This document is a vital record that carries all details of the Fixed Deposit and the holder's details. Simply put, an FDA provides proof of ownership to the holder. It also documents the nature of the FD, like whether it allows auto renewal and auto closure or whether there are nominations.
Elements of an FD advice or receipt:
A typical FD advice or receipt contains essential details like:
- Name and address: It mention the full name of the person who owns the FD and their permanent address.
- Customer ID and account number: When a Fixed Deposit account is opened, the bank assigns an account number and a unique customer ID.
- Deposit type: Banks provide two types of Fixed Deposits. The first is a cumulative FD wherein the bank pays interest frequently, typically on a monthly or quarterly basis. Such an FD is known as a cumulative FD. Banks also offer non-cumulative Fixed Deposits which allows for compounded interest payment made at the time of FD maturity.
- Principal amount, FD tenure, value date and maturity date: Principal amount is the total one-time deposit with the bank, based on which the interest is calculated. The holder can also calculate the interest using this FD calculator. The FDA mentions the period or tenure of the FD and its maturity date. The maturity date is the exact date on which the FD matures, whereas the value date is the date on which the FD was opened and became the basis for calculating the tenor of the FD.
- Rate of interest and maturity amount: The Fixed Deposit receipt also comprises the most important factor, which is the rate of interest the holder will receive on the FD and the maturity amount or the principal amount they will get back on the maturity of the FD.
- Nomination and nominee details: The document talks about whether a nomination is registered and the nominee’s details like their names and relationship with the FD holder.
- Auto renewal: Generally, the FD comes with the auto renewal mode unless the applicant mentions explicitly against it. Auto renewal allows reinvestment on a monthly, quarterly or yearly basis. It is important to be careful about this feature since once the auto renewal happens, any cancellation or premature withdrawal may draw penalties unless conditions vary.
- Auto closure: The Fixed Deposit receipt or advice also mentions whether the applicant has opted for auto closure of the FD account on maturity.
- Premature withdrawal penalty: The bank clearly spells out its penalty terms on premature withdrawal.
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