What is a Fixed Deposit Receipt: Meaning, Components & Uses

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A fixed deposit (FD) is a financial instrument provided by banks and NBFCs that allows you to invest a lump sum of money for a specified tenure ranging from 7 days to 10 years to earn at a pre-defined FD interest rate. It is one of the most common investment avenues in India used by individuals and businesses alike to earn a regular income while also saving money for the future. But many individuals often overlook the fixed deposit receipt as it is proof that you invested a lump sum in an institution. Here, we will be sharing some essential details about FD receipt and other components. 

What Is Fixed Deposit Receipt?

A fixed deposit receipt (FDR) is a document or certificate issued by the bank or NBFC to acknowledge that you have invested a certain amount of money with them for a particular tenure. It serves as proof of your investment and also states important details about the FD. Similar to a shopkeeper who offers you an invoice or receipt after you purchase something, the bank or post office provides you with a fixed deposit receipt. Now, let’s check the important components of FDR.

Components of a Fixed Deposit Receipt

Here are the key components generally mentioned on a fixed deposit receipt: 

  1. Name and Details of the Depositor: This includes your full name along with other KYC details like your address, contact number, nominee details, etc.
  2. FD Number: A unique number is allotted to each FD for identification and also tracking purposes.
  3. Amount Invested: Mention the lump sum amount invested to open the FD account.
  4. Tenure: States the lock-in period of the FD ranging from 7 days to 10 years. Premature withdrawals are usually never allowed.
  5. Interest Rate: In the fixed deposit receipt, the financial institution will mention the FD Interest Rates. The annual interest rate applicable to your FD is very clearly specified. Generally, the rates range from 4% to 7% per annum for regular individuals.
  6. Interest Payout Frequency: Mentions if the interest will be paid monthly, quarterly, annually, or at maturity.
  7. Maturity Date: The date on which the FD will mature and the principal + interest becomes payable to you.
  8. Mode of Operation: Mentions if the account is ‘Single’ or ‘Joint.’ Mandates if the operations require one holder’s consent or more in case of joint accounts.

Uses of a Fixed Deposit Receipt

A fixed deposit receipt serves multiple crucial purposes: 

1. Acts A Legal Certificate

It is a legal certificate representing your investment of a very lump sum amount for a very specific tenure with the bank. Serves as documentary proof of the FD ownership.

2. Mentions All Terms & Conditions 

It states all the terms and conditions, like interest rates, premature withdrawal rules, interest payouts, etc, related to your FD account.

3. Mentions All FD Details

It clearly mentions the maturity date and the value, implying when your full principal + interest amount will be available to you.

4. Helps To Communicate With Your Bank Clearly

It helps you track and identify your specific FD account when interacting with the bank for status updates, renewal notices, interest payouts, premature closures, loans against FD, and much more.

5. Acts As Collateral For Loan Purposes

The fixed deposit receipt acts as loan collateral. So this is because individuals can get loans against FD if they need access to immediate cash. Now, you don’t need to liquidate your FD to get cash. Instead, you can present your FDR and apply for a loan, and you can get up to 75%-90% of the FD amount as a loan. 

6. Needed At Time Of Renewal Or Maturity

In the case of an offline FD, the depositor needs to present the fixed deposit receipt and surrender it so that the institution can renew the FD. You can change the tenure as well as the interest rate. 

7. Necessary For Premature Withdrawal

If you want to withdraw your FD prematurely for any reason, then the FDR can help you. The FDR will act as ownership proof, and you will need to submit it with the bank to withdraw the funds.

8. Nominee Details

The FD receipt also mentions the nominee. So, the nomination option guarantees that the beneficiary mentioned in the FDR gets the amount in case of the death of the FD owner.

Thus, the fixed deposit receipt is not merely a piece of paper, but it actually represents your ongoing investment relationship with the bank or NBFC. It contains integral information about the FD account and should be kept safe at all times to refer to for critical details whenever required. 

Steps To Open A Fixed Deposit

Opening a fixed deposit nowadays is simple, quick, and convenient through both online and offline modes. 

  1. Visit your nearest bank branch house to fill out the FD application form and then submit the lump sum amount you wish to invest via cheque, demand draft, or cash. Get your FD receipt generated instantly once it is done.
  2. Most banks today provide dedicated websites and also mobile apps using which you can open a paperless FD fully online by providing your KYC details and linking your bank account to transfer the funds electronically. It takes less than 5 minutes.
  3. For senior citizens aged over 60 years looking for steady income, most banks offer higher FD interest rates, reaching up to 0.5% over the card rates. Opt for a monthly interest payout option as well. You can always compare the FD rates and open your FD, where you will get maximum benefits against your FD. 


Before opening an FD, look at the stability of the financial institution, interest rates offered for different tenures, premature withdrawal and renewal policies, and interest payout options, and also go through the fine print of applicable terms & conditions first. Hence, this will help you to make the most of your fixed deposit investment.

The fixed deposit remains one of the most trusted financial instruments to earn assured, risk-free returns with complete capital protection over your very desired timeframe. Hence, they understand it working for the maximum benefit. Besides regular FDs, many more FD types will fetch greater interest rates for your interest. So, visit the Wint Wealth website today and compare the rates. Happy Investing!

  • Post published:March 4, 2024
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  • Post category:Business

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