FDR's full form is Fixed Deposit Receipt. It is a simple agreement between you and the bank. It shows how much money you have invested and how much money you will get at the end of a specified period.
What is FDR?
An FDR is a document that the bank gives to the investor. This document acts as proof of investment.
FDR contains information like
- Investor name or names
- Account details
- FD tenure
- Interest rate
- Maturity date
- Maturity amount
- Deposit type
- Compounding frequency and any other information related to the investment
An FDR is just like a bill or invoice that the shopkeeper gives the customer upon purchase. Hence, individuals have to insist on an FDR from the bank.
Example:
If you invest ₹1,00,000 in a fixed deposit for 2 years at an interest rate of 7%, the bank will issue an FDR mentioning all these details, along with the maturity amount and date.
Features of an FDR
- Full Form: Fixed Deposit Receipt
- Issued By: Banks and financial institutions
- Purpose: Proof of your fixed deposit
- Minimum Deposit: Varies, often starts from ₹1,000
- Tenure: From 7 days up to 10 years
- Interest: Fixed rate, higher than a savings account
- Premature Withdrawal: Allowed with penalty
- Loan Against FDR: Yes, there is a Loan available against an FDR.
Uses of the FD Receipt
A Fixed Deposit Receipt is an important document for your future records as proof of money being held. It has many other benefits like
- It acts as a legal proof of investment
- It tells the record of the principal amount and deposit, interest, and maturity value
- It is helpful when you want to renew or close the FD
- It is helpful in tax claim verification, especially if TDS has been deducted.
- It can be used in a legal case if there is a dispute over the FD
What differentiates an FD from an FDR?
An FD and FDR are almost the same thing, but here are the key differences
- FD (Fixed Deposit): This is the product that you invest in.
- FDR (Fixed Deposit Receipt): This is the proof/receipt of your investment.
In short, when you open an FD in a bank, the bank issues an FDR to confirm your deposit.
What are the Components of a Fixed Deposit Receipt (FDR)?
1. Account Holder Details: Investor's name, address, and customer ID.
2. FD Account Number: A unique number that acts as a tracker and reference for your fixed deposit
3. Deposit Amount: This is the total amount that you have contributed.
4. Deposit Duration: The amount of time the FD is invested.
5. Interest Rate and Payout Type: The fixed interest rate on your deposit, as well as any monthly, quarterly, or maturity interest payments.
6. Date of Deposit and Date of Maturity: These mark the beginning and end of the FD tenure.
7. Maturity Amount: The total amount of interest and principal that you receive upon reaching maturity.
8. Nominee Details: This individual will receive the deposit in the case of the depositor's death.
9. Bank's Seal and Authorisation: This attests to the FDR's authenticity.
10. Premature Withdrawal Terms: Requirements and sanctions for closing the FD early.
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How to Get an FDR from a Bank?
Once you get an FD, you can check with your bank to get the FDR. Here is how you can get it:
Getting your FDR Online
Step 1: Log in to your bank’s net banking or mobile app
Step 2: Go to the ‘Deposits’ or ‘Fixed Deposits’ section.
Step 3: Enter the FD amount, tenure and interest payout preference.
Step 4: Confirm your details and submit.
Step 5: The bank will generate an FDR online, which you will be able to download.
Getting your FD Offline
Step 1: Visit your nearest bank branch.
Step 2: Fill out the FD application form.
Step 3: Deposit the amount by cash or cheque.
Step 4: The bank will issue a physical FDR.
Always keep your FDR safe, as you may need it for premature withdrawal, loan or renewal.
Things to Check in your FD Receipt
While downloading the FD Receipt or getting it offline, make sure it contains the following:
1. Name and Account Number: Verify the accuracy of your personal information.
2. Interest Rate and Tenure: Verify that the rate and duration correspond to what was decided upon at the time of booking.
3. Maturity Amount and Date: Verify again that the date and maturity value are stated accurately.
4. Nominee Details: Verify that the nominee's name, relationship, and other information are current and accurate.
5. Bank’s Stamp and Signature: The bank’s official seal and signature should be there for validation.
6. TDS Information (if applicable): Check whether TDS will be deducted from your FD interest and if your PAN is updated with the bank.
Documents Required to Open FD Account and Get Fixed Deposit Receipt (FDR)
The following documents are required:
1. Identity verification, such as a driver's license, passport, voter ID, PAN card, or Aadhaar card
2. Proof of Address (any one of the following): Utility Bill (gas, water, and electricity), Rent Agreement, Bank Statement with Address
3. A photo the size of a passport
4. Bank Account Information: Your FD's savings account that is connected to it for interest payments or maturity transfers.
5. PAN Card (required for FDs over ₹50,000): This aids the bank in reporting income tax information and correctly deducting TDS. The bank issues your FDR either immediately (digitally) or in a matter of days (physically) after the FD is booked and the documents are confirmed.
Important Things to Remember about FDR
- Premature closure is allowed, but it may attract a penalty.
- TDS (Tax Deducted at Source) is applicable if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens).
- You can choose interest payout monthly, quarterly, or at maturity.
- Keep your nominee details updated for easy claim settlement.
Frequently Asked Questions
1. How to download an FDR online?
Under the "Fixed Deposit" section of their net banking or mobile banking platforms, the majority of banks provide the ability to download FDRs.
2. What should I do if I lose my FDR?
Make a written request for a duplicate FDR at your local bank branch. After confirming your identity, the bank will provide a reprint.
3. Can I change nominee details after getting my FDR?
Yes, by visiting your bank branch during the FD tenure, you can update or modify nominee details anytime
4. Is FDR the same as FD?
FD and FDR are not the same. FD refers to the investment itself, while an FDR is the document that confirms the FD details.
5. Are digital FDRs valid?
Yes, digital or e-FDRs have the same legal and financial validity as physical ones and are accepted for loans, renewals, and verification.
6. Can I Lose my FDR?
If you lose your physical FDR, don’t worry. Visit your bank branch immediately. The bank will verify your identity and issue a duplicate FDR after completing formalities like an indemnity bond.
