Deposits
Fixed Deposit for students
FDs for students offer a secure and effective approach to start saving early. With tailored features designed to meet the unique needs of students, Fixed Deposits (FDs) can be an excellent tool for building a savings habit and ensuring financial security from a young age.
Benefits of an FD account for students
An FD account for students is more than just a savings tool; it's a step towards financial literacy and independence. Here are the benefits:
- Guaranteed returns: Unlike other investment options, FDs offer fixed returns, eliminating market risk.
- Flexible tenures: You can choose from a range of tenures, making it easier to align savings goals with academic cycles.
- Low investment threshold: With minimal initial deposits, you can start with small savings and gradually increase them.
- Loan facilities: In case of emergencies, you can avail of loans against your FDs, ensuring your education remains uninterrupted.
The process to open an FD account online
Opening an FD account online has been simplified to encourage students to embark on their savings journey with ease. Here’s a general guide to getting started:
- Visit the official websites of banks and NBFCs that offer FD facilities to understand their offerings.
- Look for the “Apply Online” section on the chosen financial institution's FD page.
- You’ll be asked to enter the mobile number registered with your bank account for verification.
- Provide personal identification details, such as your date of birth or PAN (Permanent Account Number).
- A secure OTP will be sent to your registered mobile number to ensure the security of the process.
- Choose the FD account type that suits your financial goals.
- Input the amount you wish to deposit, along with the preferred tenure for your FD.
- Review all details, confirm the information provided and complete the authentication process to finalise the FD account opening.
Axis Bank's Fixed Deposit service offers a convenient and secure way to grow your savings with an online application process. With a minimum investment of just ₹5,000, you can benefit from flexible tenure options ranging from 7 days to 10 years, competitive interest rates, and the ease of seamless fund transfers from your Savings Account. This hassle-free FD Account setup also includes an automatic roll-out facility for earning and managing FD interest for students.
Documents required
The documentation process is streamlined for students, and the following documents are required:
- A valid identity proof (Aadhaar Card, passport, etc.)
- Address proof (utility bill, Aadhaar Card, etc.)
- Passport-size photographs
- University or college ID (if applicable)
Minimum amount required to invest in FD for students
For students and early job starters, initiating a Fixed Deposit can begin with a modest sum.
Axis Bank has set the entry-level deposit for an FD at ₹5,000 when done through digital channels and ₹10,000 if initiated at a branch.
Factors to consider before investing
When contemplating a Fixed Deposit, students must deliberate on several critical aspects to optimise their investment:
- Interest rates are paramount; survey the market for the finest rates that will maximise your earnings.
- The tenure of the deposit should be in harmony with your educational and financial timelines.
- Be cognizant of premature withdrawal penalties, as they can affect the final amount if you access funds early.
- Investigate if loan facilities are available against your FD, which can be a lifeline during unforeseen financial needs without disrupting your investment's growth potential.
Also Read: 7 Different types of fixed deposit in banking
FAQs
Is it safe for students to invest in Fixed Deposits?
Yes. FDs are secured investments, often guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC). It insures each depositor's amount up to ₹5 lakh, providing a risk-free environment for your savings.
What are the minimum and maximum FD tenures available for students?
The FD tenures for students are quite flexible, ranging from as short as 7 days to as long as 10 years. This flexibility allows you to plan your investment according to your academic commitments and future financial goals.
Can students take loans on Fixed Deposits?
Students have the option to take a loan against their Fixed Deposits, usually up to 90% of the deposit amount. This facility ensures that you have financial support available in times of need without having to interrupt the compounding of your savings.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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. Please consult your financial advisor before making any financial decision.
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