Imagine you have a piggy bank that you have kept at home for years. You decide to put a certain amount of money into it and leave it there for a set period, promising not to touch it. When you finally open the piggy bank after the agreed time, you find that not only your original savings are intact, but there is a little extra as a reward for being patient.
This is how a Fixed Deposit Receipt (FDR) works. It allows you to lock your money with the bank for a fixed period, earning you guaranteed interest, so your savings grow securely over time, just like the money in your piggy bank, only with a more rewarding outcome.
An FDR (Fixed Deposit Receipt) is a way to save money with a bank or financial institution for a set amount of time. You deposit a certain amount of money and in return, the bank pays you a fixed interest. After the agreed time is over, you get back the money you originally deposited plus the interest that you earned in this period. The main benefit of an FDR is that it gives you a guaranteed return, making it a safe and reliable choice for saving money.
Starting an FDR is easy. Here is how you can get started:
Choose a Bank or Financial Institution
The first step in starting an FDR is choosing the right bank or financial institution. In Bangladesh, many banks offer attractive interest rates for FDRs. It's important to compare the rates and terms of different banks to find the best option for you.
Decide How Much to Invest and for How Long
Once you've chosen a bank, the next step is deciding how much money you want to invest and for how long. FDRs in Bangladesh come with a minimum deposit requirement, which varies by bank. You can also choose the duration of the FDR, which can range from a few months to several years, depending on your financial goals and preferences.
Complete the Application
After deciding on the amount and term, you’ll need to fill out an application form. The form will ask for basic details like your name, address, and contact information. You'll also need to submit identity documents such as your National ID card or passport for verification. This step helps ensure the security of your investment.
Deposit the Money
Once your application is processed, you will deposit your money into the bank. You can do this through a cheque, cash deposit, or online transfer, depending on your bank's facilities. After depositing your money, the bank will issue you an FDR certificate, which serves as proof of your investment. Online FDR forms are now available, making the process a bit easier than before.