Opening an FD account online is an easy, convenient, and hassle-free way to park your surplus amount in a reliable and relatively safe investment. This blog covers the process of opening an FD account online in detail.
Opening a fixed deposit no longer involves long queues, paper forms, or repeated visits to a bank branch. In 2026, improved digital infrastructure has made the process of opening an FD online quick, secure, and accessible from anywhere. Whether you’re a salaried professional looking to park your bonus, a retiree seeking stable returns, or a first-time investor taking your initial step toward financial planning, the ability to create a fixed deposit in minutes from your smartphone or laptop has transformed how Indians save and grow their wealth.
This guide walks you through the complete online FD journey—from selecting the right bank and understanding KYC requirements to troubleshooting common roadblocks. By the end, you’ll have a clear roadmap to open your FD account digitally, without stepping into a branch.
Benefits of Opening an FD Online
The move from offline to digital banking has transformed how fixed deposits are created and managed. One of the most compelling advantages of opening an FD online is access to higher interest rates. Several banks now offer digital-only fixed deposits that carry an interest rate premium of 0.10% to 0.25% over standard offline rates, making online booking financially beneficial.
- Higher interest rates: Some banks offer digital-only FDs with slightly higher interest rates compared to regular offline deposits.
- Instant booking: Once payment is completed, the FD receipt or e-FDR is generated immediately without manual processing delays.
- 24/7 accessibility: Online FDs can be opened or closed at any time, including weekends and bank holidays.
- Paperless management: All FD details are stored securely in the bank’s mobile app or internet banking portal, removing the need for physical certificates.
- Easy premature withdrawal: If funds are needed urgently, customers can close the FD online and receive the amount directly in their linked savings account.
These benefits highlight why digital platforms have become the preferred mode for FD creation and naturally lead to understanding how banks enable this process.
Bank-wise Online FD Opening Process
While the UI differs, most top Indian banks follow a similar process to the ones listed below.
| Bank Type | Top Banks | Process Overview |
| Public Sector | SBI, Bank of Baroda | Log in to NetBanking > ‘Deposits’ > ‘Create Fixed Deposit’. |
| Private Sector | HDFC, ICICI, Axis | Use Mobile App > ‘Invest’ > ‘Open FD’ > Select Tenure & Amount. |
| Small Finance | Unity, Ujjivan, Jana | Often allow non-customers to open FDs via mobile number and Video KYC. |
Despite differences in layout and navigation, the core process remains consistent, making it easy for users to follow a familiar structure across banks.
General Steps for Existing Customers
For customers who already hold a savings account, opening an FD online is a straightforward process.
- Log into your Bank’s Mobile App or Internet Banking
- Navigate to the ‘Deposits’ or ‘Investments’ section
- Select ‘Open Fixed Deposit’
- Enter the Amount and Tenure (e.g., 1 year, 3 years)
- Select the Interest Payout (Monthly, Quarterly, or Cumulative)
- Add/Confirm Nominee details
- Authenticate via OTP and the amount is debited from your savings account
Once authentication is complete and the amount is debited from the account, the deposit is created instantly. For new customers, additional verification is required, which brings documentation into focus.
Documents Required for Online FD Account Opening
For existing customers, no new documents are usually needed. For new customers (opening a digital FD without a prior savings account), you need:
- Identity & Address Proof: Aadhaar Card (linked to your mobile number)
- PAN Card: A physical copy is mandatory for the Video KYC process
- Digital Signature: Usually done on a blank white paper during the video call
- Bank Account Details: To fund the FD via UPI or NetBanking
Once documents are in place, the next step is completing the KYC verification.
KYC Verification Process for Online FD
Know Your Customer (KYC) is the backbone of digital banking. For FDs, it happens in two primary ways:
- e-KYC (OTP based): You enter your Aadhaar number, and an OTP is sent to your registered mobile. This provides limited access (often restricted to a total deposit of ₹ 1 lakh).
- Full KYC: Required for higher limits. This is now predominantly handled via Video KYC (V-CIP).
With KYC completed, customers can move ahead with full access to FD features.
Digital Signature & Video KYC for FD Opening
Video KYC allows customers to complete identity verification remotely while meeting regulatory requirements.
- Setup: Sit in a well-lit room with a plain background
- Verification call: A bank official captures a live photograph and verifies the original PAN card
- Digital signature: The customer signs on a blank white paper while the camera is active, and the signature is digitally recorded
- Geotagging: Device location must be enabled to confirm that the customer is within India
Once Video KYC is completed successfully, the FD account becomes fully functional.
Common Issues While Opening FDs Online & How to Fix Them
Some challenges may arise during the online FD opening process.
- OTP not received: Ensure the mobile number is linked to Aadhaar. Switching to the bank’s official app may help.
- Video KYC disconnection: Use a stable Wi-Fi or 5G connection. Most banks allow resuming the call using the same link.
- Payment failure: Check UPI or NetBanking limits. If the amount is debited but the FD is not created, funds usually revert within three to five working days.
- Name mismatch: Ensure that PAN and Aadhaar details match before applying.
Being aware of these issues helps ensure a smoother FD opening experience.
Final Thoughts
For anyone still hesitant about moving away from branch-based banking, the facts are clear: online FDs can offer better rates, instant confirmations, and round-the-clock access without compromising security. The regulatory framework for Video KYC and e-verification has been refined over the years to ensure that remote account opening is as safe, if not safer, as in-person processes.
And once your FD is set up, you can strategize how to get the most out of it with FD laddering.
