FDR Scheme

ALL ABOUT FDR SCHEME

A.    FDR Scheme:

A Fixed Deposit Receipt (FDR) is a financial instrument offered by various financial institutions of the country, where consumers can invest their hard earned money for a higher rate of interest than a regular FDR Scheme. Consumers can invest a fixed amount for a fixed period time at a fixed rate of interest to ensure the maximum return. If someone invest in fixed deposits, he can get higher returns for the same amount of money in a savings account in the same period of time. Interest payment against this instrument normally be made to the depositor on monthly, quarterly, half-yearly, yearly or at maturity.

 

B.    Purpose:

The purpose of Fixed Deposit Receipt (FDR) is to hold your money in a secured location that gives the luxury of highest returns for the same amount of money in other savings account in the same period of time. The main objective of FDR, help to restrict the chances of spending heard earned money impulsively and increase your financial preparedness for the secured future.

 

C.    Benefits:

-  Tax benefit;

-  Higher return;

-  Flexible tenure;

-  Capital appreciation;

-  Secured investment;

-  Growth of investment;

-  Quick processing time;

-  Increase savings nature;

-  Flexible investment amount;

-  Compulsory way of savings;

-  Low processing fees & charges;

 

D.    Some Basic & Common Features:

Financial institutions are offering a wide range of attractive features for the consumers, who wants to invest on a FDR scheme. Following are some basic and common features of FDR scheme offered by most of the Bank & NBFI’s.

-  Guaranteed return;

-  Attractive interest rates;

-  Flexible investment tenure;

-  Flexible investment amount;

-  Auto renewal facilities;

-  Loan / overdraft facilities;

-  Partial encashment facilities;

-  Pre mature encashment facilities;

-  Flexible interest encashment mode;

-  Life insurance facilities;

-  Minimum documentation;

 

E.    Investment Limit:

Most of the financial institutions are referring BDT 50,000.00 is the minimum investment limit and there is no upper limit to invest.

 

F.    Investment Tenure Parameters:

Consumers may invest their heard earned money in any FDR scheme for following tenures.

-  3 Months;

-  6 Months;

-  1 Year;

-  2 Years;

-  3 Years;

-  5 Years;

-  10 Years;

 

G.    Interest Encashment Mode:

Consumers may withdraw the earned interest from the investment amount on the following encashment mode.

-  Monthly;

-  Quarterly;

-  Half-yearly;

-  Annually;

-  At Maturity;

 

H.    Interest Rates:

FDR scheme mainly is a high interest bearing investment product. Most of the financial institutions are offering 5% - 8% of interest rates calculate based on investment amount and investment tenure.

 

I.     Fees and Charges:

There are few fees & charges may applicable to a FDR scheme. Most common fees & charges are as follows:

-  Account opening fee;

-  Auto renewal charges;

-  Partial encashment charges;

-  Pre mature encashment charges;

-  Account closure fee;

-  Other fees & Charges;

 

J.    FDR Scheme Opening Eligibility Factors:

FDR scheme account opening eligibility depends on many more factors. Most of the financial institutions are considering following eligibility factors before approving any FDR scheme opening application.

 

       (a)   Who Can Open Account?

              Any individual and/or non-individual bodies with a valid source of income.

 

       (b)   Age Limit

              Most of the financial institutions are maintaining minimum 18 years age limit for the individual consumers.

 

       (c)   Professional Experience

There is no minimum professional experience required to operate a FDR scheme in any financial institution.

 

       (d)   Minimum Monthly Income

There is no minimum monthly income level to operate a FDR scheme in any financial institution.

 

       (e)   Proof of Identity

To open a FDR scheme every individual and/or non-individual bodies have to provide proof of identity with supportive documents in accordance of respective Bank and applicable law of the land.

 

K.    Things to Consider Before Applying to Open a FDR Scheme:

Before applying to open a FDR Scheme account, consumers should consider the following things.

-  Interest rates;

-  Fee & charges;

-  Investment limit;

-  Investment tenure;

-  Auto renewal facilities;

-  Loan / overdraft facilities;

-  Partial encashment facilities;

-  Pre mature encashment facilities;

-  Flexible interest encashment mode;

-  Life insurance facilities;

-  Required documents list;

-  Compare all financers rates & features;

 

L.    Required Documents:

To open a FDR scheme account there are various types of documents are required. Proper documentation the only possible way to open an account. Most of the financial institutions are considering similar guidelines in respect to the documents required. A generic list of such documents has been provided below:

-  Complete account opening form;

-  Nominee;

-  Introducer;

-  e-TIN certificate;

-  Photograph (if individual);

-  Proof of age (if individual);

-  Proof of identity (if individual);

-  Proof of income (if individual);

-  Proof of address (if individual);

-  Proof of nationality (if individual);

-  Meeting Minutes (if non-individual);

-  Proof of business identity (if non-individual);

-  Valid permission / license (if non-individual);