Is the tenure of your fixed deposit account 10 years?
Are you worried about paying a hefty sum as a penalty on premature withdrawal of an amount from your fixed deposit account?
Is it a little lengthy process to withdraw money from a fixed deposit account?
Are you not sure about the process of premature withdrawal of a fixed deposit account?
Well, if the answer to all these questions is YES then you probably would want a solution that is easy and does not charge a penalty.
Generally, banks offer the flexibility to create fixed deposit accounts with them that begin from 7 days to 10 years. The entire amount can be withdrawn after maturity; however, in case of withdrawing an amount before maturity, a penalty has to be paid by the user to compensate for early access to the interest and principal amount.
While this is the generic process the banks and financial institutions follow for premature withdrawal of fixed deposit amounts, Paytm on the other hand offers over an edge facility.
- Paytm allows the Paytm users to create a fixed deposit just by following one easy step
- There is no penalty charged by Paytm to break the FD or on premature withdrawal of fixed deposit amount
- Just a minimum of Rs 100 is required to create a fixed deposit
- Paytm offers the best and competitive interest rates on Paytm fixed deposits account
In this blog, we will make you understand how Paytm is one of its kind that offers the best fixed deposit advantages. But before that, let us first understand a few basic things about Fixed deposits, their types and more!
What is a Fixed Deposit?
FD or a Fixed deposit known as ‘term deposit’ or ‘time deposit’ is an investment instrument service offered by banks and Non-banking financial companies (NBFC). Being the safest investment instrument out of many others, it allows users to deposit a lump sum amount for a particular time period with the financial institution. In addition to this, FD provides the users with a lot of other features such as-
- You can earn interest on the deposited amount for the pre-decided tenure, as per the rate of interest locked earlier
- The rate of interest once locked remains unaffected by any changes in market or interest rates
- You can earn interest either periodically or at the time of FD maturity
- A fixed deposit amount cannot be pulled before the maturity date and if in case, someone wants to withdraw the amount, he/she is required to pay a penalty for it
Overview of a Fixed Deposit
Below is what differentiates fixed deposit from other financial instruments to save-
|Fixed Deposits||One of the types of the investment option|
Customers are required to deposit a fixed amount for a pre-decided tenure
The principal amount along with the earned interest is credited to the customer’s account after maturity
Premature withdrawal is allowed with a penalty to be paid
Compound interest is provided in case of reinvesting the FD amount after maturity
|Who offers FDs||Banks|
|Ways to open FD||Online|
|Types of FDs||Senior Citizen FD|
Tax Saving FDs
Flexi Fixed Deposit
Cumulative Fixed Deposit
Non-Cumulative Fixed Deposit
|Premature withdrawals||Allowed but with a penalty to be paid|
|How to calculate FD||Use FD calculator available online|
|Interest rates||Interest rates differ from bank to bank|
Fixed Deposits with Paytm
Paytm is one of the leading brands that has changed the habits of spending & saving. Not just the flexibility to make transactions effortlessly at any time and from anywhere, Paytm also allows one to save smartly. By opening a savings account with Paytm Payments Bank, Paytm full KYC-ed users can thus create a fixed deposit account and earn competitive interest on the principal and more. Following are the reasons to create a fixed deposit account with Paytm Payments Bank with Induslnd bank as its partner bank:
- Get the opportunity to earn 5.5% interest on a regular fixed deposit account and 6% on senior citizens fixed deposit account
- Cherish no penalty on withdrawing an amount from the fixed deposit account before the completion maturity date
- Get the flexibility to withdraw an amount from the fixed deposit account partially
- A minimum of Rs 100 is required to create an FD account
- With the introduction of an all-new auto-create fixed deposits feature, the amount in the Paytm savings account will get automatically deducted after a certain limit set by the user to create a fixed deposit
- Fixed deposits with Paytm can be created and/or dissolved at any time, from anywhere and requires only a single click
- It takes only 1 step to create a fixed deposit account unlike banks and other financial institutes that require a lengthy process to follow
What is the Premature Withdrawal Policy of Paytm Payments Bank Fixed Deposit?
Paytm does not charge any penalty on withdrawing or breaking the fixed deposit. One can redeem the entire amount from the fixed deposit account at any given point in time.
Users can break their FD account by following the given procedure-
- Login to the Paytm application
- Click on ‘Paytm Bank’ and enter ‘passcode’
- Next, click on ‘total fixed deposits’
- On the next screen, click on ‘break fixed deposit’
- Enter the amount and click on ‘proceed’
How to Create a Fixed Deposit Account with Paytm?
Paytm Payments Bank with its banking partner Induslnd allows you to create fixed deposits and earn competitive interest rates on the deposited value. Following are the steps to create a fixed deposit account with Paytm-
- Launch Paytm mobile application
- Navigate to ‘Paytm Bank’ and click on it
- Enter your passcode to Paytm Bank
- Scroll the screen and locate ‘Create a New Fixed Deposit’
- Enter the amount you wish to deposit
- Click on ‘Proceed’