Term Deposit Receipt: TDR Meaning and Significance

Term Deposit Receipt is a document acknowledging fixed deposit placement with a bank.
Term Deposit Receipt
3 min
10 April 2024

Term deposits are perhaps one of the most popular ways to securely invest money with financial institutions. In this article, we will understand what term deposits are, different types of term deposits, term deposit receipt TDR meaning, and its significance.

Firstly, before delving into TDR meaning it is crucial to know what term deposits are.

What is a term deposit and how it works

A term deposit is an investment for a specified term where an investor puts in a certain amount of money which accrues interest over that time. The time period here is prearranged and could range from a month to five years. The interest rates remain constant throughout the deposit period. This makes it a safe avenue for investors to park their money for a certain period as it remains impervious to market fluctuations. The funds can be easily withdrawn at the end of the term. Premature withdrawal of funds from term deposits may incur a penalty which can be the loss of accrued interest as well. Depending on the plan’s terms, interest payouts could be yearly, quarterly, monthly, or even weekly. Term deposits can be made at financial institutions like banks, credit unions, and non-banking financial institutions (NBFCs), among others.

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. Bajaj Finance offers lucrative interest rates of up to 8.85% per annum on term deposits and bookings can be easily made through the Bajaj Finserv website or application. With [ICRA]AAA(Stable) and CRISIL AAA/STABLE ratings, you can rest assured that your term deposit will be secured and generate guaranteed returns.

Salient features of term deposits

Term deposits are popular instruments among investors to securely grow their funds. In addition to the fixed interest rate, term deposits have some unique features. Let’s take a closer look at a few of them-

  • Interest rates- Firstly, it is important to reiterate that the interest rate in term deposits is not dependent on market fluctuations and remains constant. What’s more, term deposits have interest rates higher than regular savings accounts.
  • Secure investment- Term deposits are safe avenues for depositing money and you can be rest assured of assured returns.
  • Flexible terms- Under term deposits, investors have the freedom to choose the exact term for which they want to lock in the investment. A usual rule of thumb is that investments for longer tenures would be accompanied by higher interest rates.
    Pro tip: Always compare investment rates and plans offered by financial institutions before making the final decision. Bajaj Finance term deposit can be a smart investment as they don’t just offer lucrative interest rates but also come with the highest credit ratings and flexible payout options.
  • Wealth generation- It is important to understand the significance of term deposits for wealth generation. Term deposits, with a fixed rate of interest and secure deposits, are a staple in every investor’s portfolio. It is an invaluable avenue for wealth generation even during market turbulence.

Even other than these, there are several other features of term deposits. You can read more about them here.

Term deposit receipt- TDR meaning

So what is TDR? Now that we have an insight into the meaning of term deposits, let’s also understand TDR meaning. Term deposit receipt (TDR) is an important document that verifies the ownership of a term deposit. It is a literal proof that the financial institution has your deposit under a set of terms which include an agreed upon interest rate and deposit tenure.

Contents of a 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)

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.


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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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.