How to invest/close Bank Fixed Deposits

Fixed deposit can be made at any normal (exceptions for Industrial Development Branches, etc,.) branches of the banks.

Invest:

1. You need not have any prior account with the bank/branch to make a FD
2. You can submit a cheque for the value of the FD investment.  However, FD bond will be given only after cheque clearance is done.  That means, you need to visit the bank again to collect the bond/certificate which will be drafted only after cheque clearance is done. Still, use of cheque helps you avoid carrying cash in case you are planning for a bulk amounts in a remote branch
3. You need to fill up the FD application form with your name, sign, nominee and other info
4. In case if you don’t have a account with the bank, you need to submit
   1. Address Proof (Xerox)
   2. Identity Proof (Xerox)
   3. PAN card (Xerox) — in case the FD value is >40,000 or you are already a IT tax payer
   4. Two passport size color photographs
5. One has to go in-person for all the above processing or you can get the FD application form in-advance, fill up and submit with all the above documents via your representative
6. You can have your FD account linked to your saving accounts so that you can verify the it via internet-banking

Closure:

1. On any bank working day, carry your FD bond/certificate and walk to the branch where you deposited. To my understanding, you can withdraw from other branches as well.
2. Submit the bond at the deposits counter and request for it’s closure
3. Present any of your identity proof for their confirmation
4. In case of premature closure, penalty will be deducted from the returns
5. In case interest is above Rs.10,000, TDS will be deducted from the returns
6. Then you’ll be given an account payable cheque for the whole value of your FD returns