These banks allow opening FD without a savings account
There are a few banks that allow an individual to make an FD without opening a savings account with them.
Fixed deposits (FD) are one of the most secure and safe investment options. Though the interest rates are low, FDs offer you safe returns from your investment. But generally, if anyone wishes to open an FD in a bank, the individual needs to have a savings account first with the bank. Though this is common practice, there are a few banks that allow you to make an FD without opening a savings account with them. These banks allow an individual to open an FD if he/she submits KYC documents.
Money9 gives you a description of three major banks that offer this facility.
Axis Bank
Axis Bank is the only leading commercial lender that offers the facility of having an FD without opening a savings account. Called Axis Express Fixed Deposit it can be opened within three-four minutes via the digital route. It can be opened by adding only PAN and Aadhaar details of the investor.
To open an Express Fixed Deposit, individuals need to be above 18 years of age and his/her mobile number must be linked to the Aadhaar card. If these two conditions are fulfilled, he/she need not be an existing Axis Bank customer.
One can deposit a minimum of Rs 5,000 and a maximum of Rs 90,000 in these FDs. You can choose tenures between six months and 12 months. If required, you can withdraw up to 25% of your fixed deposit amount with no penalty charges.
After the maturity, the amount will be credited to the designated account which the person mentioned in the FD opening form.
Except Axis Bank, no other big commercial bank offers this special FD till date. Some bank offers special FD for minors or adult, without having a proper savings account but they should be the nominee of any of the existing account holder.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank is a leading name in its category that offers fixed deposits without having a savings account with them. Customers can open this digital FD instantly through Aadhaar and PAN numbers. The investors don’t need to have a savings account with Ujjivan Small Finance Bank to open this FD.
Besides, a normal customer can also open an FD. The bank offers an interest rate of 6.50% on FD that matures within one year to two years. Customers can open a fixed deposit with tenure of any period between 30 days to 10 years.
The FD is flexible, as customers can withdraw prematurely without penalty after six months. If required, customers can have access to net banking also. After maturity, the amount will be credited to any account of the investor.
Equitas Small Finance Bank
Equitas Small Finance Bank has introduced ‘Selfe FD’ for customers of other banks. Anyone can open an FD instantly with the help of his/her Aadhaar card and PAN card only. It offers interest rates of up to 7.75%. Depositors can also use UPI payment options to fund the FD.
To open an FD, one needs to be a tax resident of India and should be above the age of 18. He/she should not be an existing customer of Equitas Bank. One can open the FD online instantly in a couple of minutes.
All you need to do is fill in the online form with key details such as name, date of birth, Aadhaar number, PAN, the mobile number registered with Aadhaar, email, etc. Individuals can book FDs maturing within 7 days to 1 year.
One can open an FD with a minimum investment of Rs 5,000 and it goes up to Rs 90,000. However, premature withdrawal attracts a penalty.