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How Much Time Does It Take to Open a Fixed Deposit


Fixed deposits are one of the oldest and most popular investment options in India due to their safety, guaranteed returns, and flexibility. Individuals can earn a return in the form of interest by depositing a sum of money with a bank or financial institution for a fixed period. The most common question that comes is how long does it take to open a Fixed Deposit Account? Is it a time-taking and cumbersome process? Let us find the answers. 

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What is the Process for Opening a Fixed Deposit?

To open a fixed deposit account, follow these step-by-step instructions:

1. Do your research and choose a bank or financial institution: When selecting the right institution, consider reputation and interest rates. Look for a trusted and reliable institution that offers competitive interest rates.

2. Gather necessary documents for KYC verification: To open a fixed deposit account, you will need identification proof, address proof, and a PAN card. Ensure that all your documents are accurate and up-to-date.

3. Visit the bank or apply online: You can visit a branch or apply online through the institution's platform. Applying online offers convenience and saves time.

4. Complete the application form: Fill out the application form with accurate details, ensuring no errors or omissions. Double-check the information to avoid any delays in processing.

5. Submit the application with the required documents: It is crucial to submit all the necessary documents accurately and promptly. Depending on the bank's requirements, you can submit the documents digitally or physically.

KYC Verification 

Know Your Customer (KYC) verification is essential in opening a fixed deposit account. The timeline for KYC verification may vary depending on the institution and the complexity of the verification process. Here are some possible scenarios:

1. Same-day verification: Sometimes, KYC verification can be completed on the same day as the payment. This typically occurs when all the required documents are in order, and the verification process is straightforward.

2. Next working day verification: In other instances, verification may take until the next working day. This can happen if there are additional checks or if the verification process requires more time.

It's important to note that these timelines are general guidelines, and the actual duration may vary based on individual circumstances.

However, if you already have an account with the respective bank or financial institution, re-KYC is not necessary.

Account Activation and Timeframe

After completing the KYC verification process, the next step is account activation. The timeframe for account activation can vary, and here are some possibilities:

1. Same-day activation: In certain cases, the account can be activated on the same day as the verification. This typically occurs when all the necessary requirements are met and the institution's processes are efficient.

2. Next working day activation: In other situations, account activation may occur on the following working day. This can happen if there are additional steps involved in the activation process.

The activation timelines may vary depending on the institution's internal procedures and the workload they are handling at the time.

In many cases, if one has a saving account with the same Bank, the FD can be created instantly with the help of Internet Banking.


Fixed deposits offer secure and reliable investments with stable returns. Opening a fixed deposit involves research, documentation, and verification. Understand the timeline, submit accurate documents promptly, and explore different institutions for the best rates. Make informed decisions for maximum returns.


1. What is the minimum investment amount for FDs?

The minimum amount of investment is as low as ₹100. Hence, it's a fantastic choice for those with limited money. To find out how much interest you will make on an FD with a small investment, use an FD calculator.

2. Can I open a fixed deposit account jointly with another person?

Yes, many banks allow joint fixed deposit accounts. Joint accounts offer shared ownership and can provide some additional benefits, such as tax benefits. You can open an account with a family member, spouse, or others.

3. What is the tenure or duration of a fixed deposit?

The tenure or duration of a fixed deposit can vary from a few months to several years. Typically, banks offer fixed deposit tenures ranging from 7 days to 10 years. You can choose a tenure based on your financial goals and preferences.

4. Can I avail of a loan against my fixed deposit?

Yes, many banks offer loans against fixed deposits as collateral. This can be useful if you require funds but don't want to break your fixed deposit prematurely. The loan amount is typically a percentage of the fixed deposit amount.

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