What is a Standalone FD? Unlocking the Flexibility of Independent Fixed Deposits

July 03, 2025

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In the world of Fixed Deposits (FDs), a standalone FD is a unique and flexible financial product that allows you to invest without the need to open or maintain a savings account with the bank. This type of FD offers the same benefits as a regular FD, such as guaranteed returns and safety, but with one key difference: you don’t need to have a savings account with the bank to open the account.

 

For individuals who may already have a savings account elsewhere or prefer keeping their finances separate, a standalone FD provides the perfect solution. But what makes this type of FD stand out? Let’s dive deeper into how standalone FDs work, their benefits, and why they could be the right choice for your financial portfolio.

 

What Makes Standalone FDs Different?

At its core, a standalone Fixed Deposit is an investment option that allows you to deposit a lump sum amount for a fixed tenure with a bank or financial institution. Unlike traditional FDs that require you to have an active savings or current account with the same bank, standalone FDs let you invest without this additional requirement.

 

Here’s a quick look at how it works:

  • No Account Linkage: You can open a fixed deposit without the need to open a savings account at the same bank.
  • Flexible Tenures: Like other FDs, standalone FDs come with flexible tenures ranging from 7 days to 10 years.
  • Attractive Interest Rates: Standalone FDs generally offer competitive interest rates, ensuring that your money grows safely over time.
  • Guaranteed Returns: Your investment earns a fixed rate of interest, regardless of market fluctuations.

 

Key Benefits of Standalone FDs

  1. Simplicity and Convenience: You don’t need to go through the hassle of maintaining a savings account, making it ideal for people who prefer minimal banking relationships or already have accounts elsewhere.
  2. Higher Interest Rates: You can enjoy higher interest rates if you open an FD with Ujjivan Small Finance Bank. Senior Citizens qualify for an additional interest rate of 0.50% above standard rates.
  3. Safe and Secure: Like all fixed deposits, standalone FDs are a low-risk investment option. The capital is protected, and the returns are predictable.
  4. Higher Liquidity: In case of an emergency, you can choose to prematurely withdraw your FD (though with a penalty). This liquidity can be helpful without tying up your savings account balance.
  5. Tax Benefits: Just like regular FDs, standalone FDs can be used for tax-saving purposes if they qualify under Section 80C (Tax-Saving Fixed Deposits).

 

Who Should Opt for a Standalone FD?

Standalone FDs are ideal for:

  • Individuals with multiple bank accounts who prefer keeping their investments separate from their savings accounts.
  • People seeking diversification in their financial portfolio without complicating their banking setup.
  • NRIs who want to open an FD in India but don’t wish to open a local savings account.

 

If you’re someone who values the autonomy of managing finances across different banks or wants an easy way to invest without a savings account, a standalone FD could be a perfect match.

 

How to Open a Standalone FD?

Here’s how you can open a standalone Fixed Deposit with Ujjivan Small Finance Bank.

 

Step 1: Enter your mobile number, PAN and Aadhaar

 

Step 2: Enter Deposit details and complete the payment

 

Step 3: Provide personal details

 

Step 4: Complete video KYC (08:00 AM To 08:00 PM)

 

Receive FD receipt and maximize your returns!

Final Thoughts

Standalone FDs are a perfect choice for those looking for flexibility and simplicity. Whether you’re someone who already has a savings account with another bank or simply prefer to keep your investments and savings separate, standalone FDs provide an easy, risk-free way to grow your money. With competitive interest rates, guaranteed returns, and the ability to maintain your financial independence, standalone FDs should definitely be considered in your investment strategy.

 

Looking to grow your savings faster? Ujjivan SFB offers a wide range of fixed deposit products. Select the FD of your choice and take a step forward to your financial goals. Alternatively, you can browse through Ujjivan SFB product suite - our wide range of financial products are designed to make your financial life better.

 

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

 

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk.  Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

 

To know more about Ujjivan Small Finance Bank Products Visit:"https://www.ujjivansfb.in"

 

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to Ujjivan Small Finance Bank Limited or its licensors. Unauthorised use or misuse of any intellectual property, or other content displayed herein is strictly prohibited and the same is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person’s nationality, residence or otherwise) be contrary to law or registration or would subject Ujjivan Small Finance Bank Limited or its affiliates to any licensing or registration requirements.

   

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FAQs

1. Can I open a standalone FD without a savings account?

Yes, a standalone FD does not require you to have a savings or current account with the bank.

2. Are the interest rates on standalone FDs the same as regular FDs?

Generally, yes. Standalone FDs offer interest rates similar to or slightly higher than regular FDs.

3. Can I withdraw my money before the maturity date?

Yes, premature withdrawal is possible, but it may attract a penalty on the interest earned.

4. Is tax deducted at source (TDS) applicable on standalone FDs?

Yes, TDS is applicable on the interest earned from standalone FDs if the interest exceeds the prescribed limit.

5. What happens if I don’t have a savings account in the bank where I open the FD?

Your fixed deposit will still be valid, and you’ll earn interest as per the agreed terms without needing an active savings account.

6. Are standalone FDs safe?

Yes, standalone FDs are as safe as regular FDs and are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor, per bank.

7. Can I link a standalone FD to my existing savings account later?

Generally, standalone FDs cannot be linked to a savings account after opening. You would have to close the FD and open a new one with the linked account if required.

8. Are there any penalties for premature withdrawal of standalone FDs?

Yes, premature withdrawal usually results in a penalty on the interest earned, which may be lower than the rate originally promised.

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