Term Deposit Receipt

Term Deposit Receipt (TDR) is a fixed-term investment where an individual deposits money into a financial institution for a predetermined period.
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Term Deposit Receipt
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3 min
30-June-2025

Term Deposit Receipts (TDRs) are financial instruments offered by banks to customers seeking a fixed return on their investments. Essentially, a TDR is a certificate issued by a financial institution, confirming a deposit for a specific period at a predetermined interest rate.

What is a term deposit and how it works

A term deposit is a fixed investment where an individual deposits a specific amount for a set duration, typically ranging from one month to five years. The interest rate is fixed for the entire term, offering safety from market volatility and predictable returns.

Funds are accessible at the end of the tenure, though premature withdrawals may attract penalties, including reduced or forfeited interest. Interest payouts can be scheduled monthly, quarterly, yearly, or as specified in the plan. Term deposits are available through banks, credit unions, and NBFCs, making them a reliable option for conservative investors.

Essentially, fixed deposit (FD) are a specific type of term deposit. They share the same core features of safety, fixed interest rates, and a set tenure. The terms might be used interchangeably depending on the country and institution.

To book a term deposit, you can either physically visit a financial institution, or book a deposit from their website or portal. When you book a term deposit, the financial institution provides you with an acknowledgement which is the term deposit receipt, with all the important details of the investment like the interest rate and tenure.

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 6.95% p.a. for non-senior citizens, and up to 7.30% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.35% p.a.

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Features of Term Deposit Receipts (TDRs)

 

  • Fixed Interest Rate
    TDRs come with a fixed interest rate that stays the same throughout the investment period, offering stable and predictable earnings.
  • Flexible Tenure
    You can choose how long you want to invest—anywhere from a few months to several years—based on your financial needs.
  • Guaranteed Returns
    TDRs are low-risk investments that ensure the return of your principal along with the interest earned at maturity.
  • Loan Facility
    Many banks allow you to take a loan against your TDR, giving you access to funds during emergencies without breaking the deposit.
  • Nomination Facility
    You can nominate a beneficiary to receive the TDR amount in case of your death, making fund transfer hassle-free.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.30% p.a.

Types of TDR

  • Cumulative TDR:
    In this option, the interest earned is reinvested into the deposit and paid out along with the principal at maturity. It is ideal for investors who do not need regular payouts and prefer higher returns at the end of the term.
  • Non-Cumulative TDR:
    Here, the interest is paid at regular intervals—monthly, quarterly, half-yearly, or annually. This type suits investors who prefer a steady income stream from their investment.

Term deposit receipt

All your investment details are contained in a TDR meaning that it is an extremely important document that must be stored safely. For you as an investor, it is vital to know what are the contents of a TDR so that you can swiftly verify the document. Without further ado, let’s learn about the TDR contents

  • Bank declaration
  • Depositor details (name, age, account number)
  • Details of the term deposit (principal amount, tenure with booking and maturity dates, interest rate)
  • Interest amount and the total amount that will be gained and can be withdrawn at the end of the term
  • Nominee details (a nominee is a designated person who will receive the funds upon the unexpected demise of the depositor)
  • Term deposit plan details (like penalty rate in case of premature withdrawal of the deposit amount)

Also read: Recurring deposit meaning

Uses and significance of term deposit receipts

Term deposit receipt is an important document. We’ve established that so far. But now, let’s understand TDR meaning and a few scenarios where TDR can be used and be valuable-

  • Deposit renewal- Having known TDR meaning, it is clear that it contains all the essential details of a deposit. When you want to renew your deposit, the last deposit’s TDR can be invaluable as it provides you with an easy frame of reference to track changes (if any) and make an informed decision. Also, in some cases, the financial institution may ask you to surrender your physical TDR copy to issue a new TDR for the term deposit.
  • Early withdrawal- In some circumstances, if you decide to withdraw your funds from the term deposit prematurely, you may be required to furnish the TDR to prove ownership. If the TDR goes missing, it may create additional issues and will certainly delay the withdrawal process if you need funds urgently.
  • Loan against term deposit- If you need urgent liquidity but do not want to withdraw funds from the deposit, then you can also avail a loan against your deposit. The exact amount of the loan would be a certain percentage of your deposit and may vary. If you want to apply for a loan, you may be required to submit the term deposit receipt at the financial institution for the duration of the loan and it will be released once the loan is repaid.

Factors to consider while investing in Term Deposit Receipts (TDRs)

Before investing in Term Deposit Receipts (TDRs), it is essential to consider several factors to make an informed decision:

  • Interest rates: Compare the interest rates offered by different financial institutions. Look for competitive rates that align with your financial goals.
  • Tenure: Choose a tenure that suits your investment horizon and liquidity needs. Longer tenures generally offer higher interest rates but may have limited liquidity.
  • Credit rating: Assess the creditworthiness of the financial institution offering the TDR. Opt for institutions with high credit ratings to minimize risk.
  • Tax implications: Understand the tax implications of investing in TDRs. Consider the applicable tax rates and any available deductions to calculate your net returns.
  • Premature withdrawal: Check the terms and conditions for premature withdrawal, including any penalties or reduced interest rates.
  • Additional features: Some TDRs may offer additional features like loan facilities or overdraft options. Evaluate these features based on your individual requirements.

Conclusion

Term deposits offer a secure way for investors to grow their funds, shielded from market turbulence. The term deposit receipt (TDR) serves as a vital document, containing the deposit's terms and verifying ownership. With its comprehensive contents, the TDR facilitates various financial transactions, from deposit renewal to loan applications, ensuring transparency and security. As you navigate wealth generation and stable investments, the TDR maintains its place as proof of your journey, providing peace of mind and accountability.

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FAQs

What is TDR full form?

TDR stands for Term Deposit Receipt. It is a document issued by a bank or financial institution confirming the deposit of a fixed sum for a specific period at a predetermined interest rate.

What is the maturity of TDR?

The maturity period of a TDR varies depending on the chosen tenure. It can range from 7 days to 10 years, based on the policies of the bank or financial institution offering the deposit.

Is TDR a fixed deposit?

Yes, a TDR is a type of Fixed Deposit (FD). It involves depositing a lump sum amount for a fixed term at a guaranteed interest rate. The term “TDR” is often used interchangeably with FD, especially in banking terminology.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.