Digital Fixed Deposits: Convenience at Your Fingertips

Digital Fixed Deposits are fast becoming a cornerstone of savvy financial planning. They offer maximum convenience allowing investors grow their savings in a secure way from the comfort of their home. In this blog, we have explored why Digital Fixed Deposits are the need of the hour, focusing on the benefits they bring to the table.

Why Online Fixed Deposits? 

Unlike traditional Fixed Deposits which require branch visits and paperwork, Digital Fixed Deposits or Online FDs allow you book FD right from your smartphone or laptop. Here's why they're gaining popularity:

• Convenience: Open an FD account anytime, anywhere.
• Speed: No lengthy processes; set up in minutes.
• Security: Advanced digital security measures protect your money.
• Accessibility: Review and manage your FDs easily through online platforms.

Why Digital FDs are a Boon?

Digital fixed deposits represent a significant shift towards more accessible and efficient personal finance management. With Digital FDs, you can say goodbye to traditional hassles. Opening an account, managing your deposits, and accessing your FD account can all be done conveniently online. 

This saves you precious time and effort, allowing you to stay on top of your finances with ease. 

1. Higher Interest Rates

Banks like Ujjivan SFB offer high-interest Digital Fixed Deposits. Also, senior citizens are often eligible for additional interest rates. For instance, Ujjivan SFB offers up to 0.50%* p.a. additional Digital FD interest rate for senior citizens.

2. Saves Time

With Digital FDs, you don't have to visit bank branches. These are online FDs, meaning you can open your account from anywhere, anytime. All you need to do is submit your PAN and Aadhar details and complete your Video KYC. The entire process takes only a few minutes. 

3. Zero Paperwork

Say goodbye to lengthy and boring paperwork. Your PAN and Aadhar details are enough to open a Digital Fixed Deposit account. However, ensure that your mobile number is linked to Aadhar to experience a hassle-free account opening process.

4. Automatic Renewal and Closure

Managing your deposits is super easy with Online FDs. These accounts often offer automatic renewal options, eliminating the hassle of manually renewing your FD upon maturity. Additionally, some platforms provide the convenience of online closure requests, allowing you to access your funds quickly when needed. Please note that early FD withdrawal can attract penalty. However, Ujjivan SFB doesn't charge any penalty fee for closure of deposits made after 6 months from the time of account opening.

5. Enhanced Security Features

Security is a top concern when it comes to financial transactions. Online FDs prioritise the safety of your funds through robust encryption and authentication measures. Features like two-factor authentication and biometric verification ensure that your investments are protected from unauthorised access.

These security measures are provided to all FD holders irrespective of whether they have an account with the bank or not. However, opening such FDs is all the easier if you already have an account with the bank.

6. Seamless Integration for Existing Customers

If you already have an account with a digital bank, opening an Online FD becomes even easier. Your existing account seamlessly connects with the online platform, making transfers and managing your FDs a breeze. Some platforms also offer auto-renewal capabilities, ensuring that your investment continues to grow uninterrupted upon maturity. With these integrations, applying for FDs online can encourage you to inculcate the habit of saving. Please note that you don't need to have a Savings Account to open Digital FD with Ujjivan SFB.

7. Promoting Disciplined Saving and Growth

Digital Fixed Deposits encourage disciplined saving habits by locking away your funds for a predetermined period. This makes it less likely for you to make impulsive withdrawals, allowing your money to grow steadily and help you achieve your financial goals.

Comparing Traditional and Online FDs