Invest in FDs without a bank account, through Moneycontrol

Steps to open an FD account, or make a premature withdrawal entirely online.

Now, while investing in FDs on Moneycontrol, there's no need to open a new savings bank account, making both the booking and the withdrawal process entirely online.

You have the option to diversify your investments across four financial institutions — Bajaj Finance, Shriram Finance, Utkarsh Small Finance Bank, and Shivalik Small Finance Bank. Over time, fixed deposit schemes from other banks and non-banking finance companies (NBFCs) will be added, which will help you diversify your FD portfolio even further.

Let’s discuss steps to open an FD online, and the withdrawal process.

Steps to open an FD

On the Moneycontrol app, first you need to select the bank you want to open your  FD with. Remember, the option to open FDs is only available on the app; you cannot open an FD from the website.

Next, select the FD tenure and enter the investment amount. You need to provide your full name, PAN, and verify your Aadhar number through an OTP on the registered mobile number.

Then you need to provide your personal and professional details, such as father’s name, mother’s maiden name, marital status, occupation, and annual income bracket. It’s important you add a nominee while investing in an FD. The nominee will be entitled to your funds in case of any unforeseen  eventuality.

Finally,  transfer the amount to the FD via UPI.

Also read | Diversify your fixed investments with Moneycontrol platform

Steps for premature withdrawal of FD 

If required, you can always make a premature withdrawal full amount from an FD opened through Moneycontrol. Your FD can also be liquidated on maturity.

You can make a premature withdrawal by going to the specific FD’s details page by selecting the FD from the investment dashboard.

You will receive a message / notification from the bank on the registered mobile number once the money is credited to your account. The FD booking will automatically be removed post withdrawal.

There are no withdrawal processing charges for FDs on Moneycontrol, i.e., you do not have to pay anything use the withdrawal facility. However, there will be a penalty rate applicable, as mentioned in the terms and conditions of the bank.

You can now Invest in Fixed Deposits on Moneycontrol app.

Invest across multiple banks  

To reduce the risk associated with a single bank, you should invest in FDs with different banks and financial institutions. That way, your FD investment will not be concentrated in one financial institution, thus reducing risk.

The central bank secures deposits in public sector banks, private banks, and small-finance banks. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the central bank, guarantees investments in fixed deposits of up to Rs 5 lakh.

Moreover, the NBFCs associated, like Bajaj Finance, hold a high AAA / Stable rating by CRISIL. Shriram Finance is rated AA+ / Stable by ICRA.