FD without a savings account: How can online FDs help?

Meet Anjali. She juggles her busy work life with her dream of a vacation abroad. While she diligently keeps aside a portion of her salary, her savings accounts, with their minimal interest rates, are not helping her reach her goal fast enough. Moreover, she dips into those savings whenever unexpected expenses arise, slowing her progress even more. Anjali decides to explore other investment options to offer higher returns and help her achieve her dream vacation sooner. 

She has heard about Fixed Deposits (FDs)—the traditional, risk-free, and convenient investment choice in India—but she doesn’t want to open another savings account. She wonders if she can invest in FD without a savings account.

The answer is yes, and online FDs are the solution. Let’s understand how they work and how they can benefit you.

What are online FDs?
 

Online FDs are fixed-income investment products that banks and financial institutions offer entirely through their online platforms. Here’s the gist:

• You invest a lumpsum amount for a predetermined tenure (ranging from a few days to 10 years).
• The bank or NBFC (Non-banking financial institution) offers a fixed FD interest rate throughout the tenure.
• You earn interest on your deposit, which is compounded periodically (usually quarterly or annually), increasing your returns.
• At maturity, you receive your principal amount along with the accrued interest.

The key difference lies in the account requirement. Unlike traditional FDs, online FDs do not require maintaining a separate savings account with the same bank.

The advantages of online FDs
 

Compared to traditional FDs, online FDs offer several advantages, such as –

• Convenience

Opening an online FD account is a breeze. You can complete the entire process from your smartphone, anytime, anywhere. No more waiting in queues or visiting bank branches during working hours.

• Competitive interest rates

Many online FDs offer attractive FD interest rates, sometimes even higher than those on traditional FDs. This is because online platforms have lower operating costs, which can translate into better returns for you.

• Faster processing

The application process for a digital FD is faster and simpler than traditional methods. You can get your FD opened and funded within minutes.

• Transparency and management

Online FD platforms provide clear and easily accessible information on interest rates, tenures, and other relevant details. You can make informed decisions—deposit, reinvest, and withdraw—on the same platform within minutes.

• Flexibility

Several options offer flexibility in terms of choosing your tenure and interest payout options (monthly, quarterly, or at maturity). Some platforms might even allow for premature withdrawals with minimal penalties.

• Minimal paperwork

Gone are the days of mountains of paperwork. Opening a digital FD involves a simple online application process with minimal documentation requirements.

How do online FDs work?
 

Online FDs function similarly to traditional FDs. Here’s a basic overview –

• Choose a bank

Research and select a reputable financial institution offering a digital FD with the best FD interest rates.

• Complete online KYC (know your customer)

Most online platforms have a streamlined KYC process that can be completed electronically. This may involve submitting proof of identity and address, including your Aadhaar and PAN.

• Choose FD details

Select the desired investment amount, tenure, and FD interest rate.

• Transfer the funds

Once your KYC is complete, you can transfer funds from your existing bank account (any bank) to your new FD account.

Online FDs are accessible to everyone with a valid KYC and a bank account for transferring funds. This opens up a world of investment opportunities for individuals who may not have a savings account with a specific bank but still want to enjoy the benefits of FDs.

Metra Trust – Your partner in online FDs
 

Metra Trust has introduced its one-in-kind Digital FD. This allows you to enjoy the peace of mind that comes with a risk-free investment option with the added stability of a fixed interest rate to safeguard you from market fluctuation. Here’s why Metra Trust Digital FD could be the right choice for you.

• High FD interest rates –

Earn attractive returns of up to 7.75 % p.a. on your investment.

• Flexible payouts –

Tailor your earnings with interest payouts every month, quarter, or at maturity.

• Senior citizen benefits –

Senior citizens enjoy an additional 0.5% FD interest rate. Moreover, there is no penalty for early withdrawal of FD.

• Easy management –

Manage your FD conveniently through the Metra Trust app, all in one place.

• Invest small, dream big –

Start your investment journey with a minimum deposit of just ₹ 5,000.

Opening and managing your online FD account
 

You can open Metra Trust Digital FD in just three simple steps –

• Visit the Metra Trust website or download the Metra Trust app
• Click on the ‘Open Digital FD’ option
• Follow the on-screen instructions, providing your KYC and other investment details, including your amount, tenure, payout options and fund the FD

Once completed, your FD account will be instantly created.

The Metra Trust app lets you conveniently manage your FD account anytime, anywhere. You can –

• View your FD details, track interest earned, and monitor your investment progress
• Choose your preferred payout method for interest earned
• Download account statements for record-keeping purposes
• You can even prematurely close your FD with a single click through an easy online closure process

Are online FDs risk-free?
 

While online FDs are a secure investment option, here are a few potential risks you should be aware of –

• Internet banking security

Online platforms can be vulnerable to cyberattacks, which could compromise your account information or even lead to the theft of your deposited funds. You can always practice safe online banking habits and protect yourself by –

- Choosing a reputable bank or NBFC with a strong online security presence and encryption protocols

- Enabling two-factor authentication

- Never clicking on suspicious links or attachments

- Being cautious of phishing emails or calls that try to trick you into revealing login credentials

- Using strong, unique passwords for your online banking accounts

• Technical glitches

Though rare, technical issues with the bank’s online platform might prevent you from accessing your account or managing your FD.

• Less familiarity

You might be less familiar with the online process than the traditional in-person method, which can sometimes lead to errors.

If you encounter any issues or have any concerns about accessing your account online, do not hesitate to contact Metra Trust Customer Care. They are available 24X7, all days of the year.

Ready to get started?
 

Online FDs are a convenient and accessible option to invest your money and earn guaranteed returns. Like Anjali, you can also unlock the benefits of FD without a savings account. So, don’t wait! Invest in your future with Metra Trust Digital FD. Experience the power of convenience, high returns, and a secure investment option. Get started today!