Term Deposit Receipt (TDR)

In summary

A term deposit receipt provides documentary evidence of a term deposit and helps investors verify important investment conditions.

• It usually records the deposit amount, interest rate, tenure, maturity date, and depositor information.
• A term deposit generally earns a predetermined interest rate throughout the booked tenure.
• Premature withdrawal rules and interest reductions differ according to the issuer and applicable regulations.
• Cumulative deposits generally pay accumulated interest at maturity, while non-cumulative deposits provide periodic interest payouts.
• Bajaj Finance provides an Electronic Fixed Deposit Receipt, or e-FDR, after successfully booking its Fixed Deposit.
• Bajaj Finance Fixed Deposit currently offers rates up to 8.15% p.a. for eligible senior citizens.

Keeping the receipt accessible can help investors verify deposit details, manage maturity instructions, and complete applicable servicing requests.

What is a term deposit and how it works?

A term deposit involves depositing a specified amount for an agreed period at a predetermined interest rate. The invested amount generally remains with the issuer until maturity, although premature withdrawal may be permitted according to applicable conditions.

A typical term deposit works through the following stages:

With Bajaj Finance Fixed Deposits, investors get clear tenure options, predictable interest rates, and easy online booking—making long-term planning simpler. Check rates.

Features of Term Deposit Receipts (TDRs)

A deposit receipt provides a convenient record of the contractual details associated with the underlying term deposit.

Important features can include:

• Deposit amount: Records the principal amount invested with the issuing institution.
• Interest rate: Shows the applicable rate agreed when the deposit was booked.
• Tenure: Records how long the money remains invested under the selected terms.
• Maturity date: Shows when the deposit becomes payable under ordinary circumstances.
• Depositor details: Identifies the individual or joint holders associated with the deposit.
• Nomination information: May record nomination details according to the issuer's systems.
• Deposit number: Provides a unique reference for servicing and tracking the investment.
• Payout option: May show whether interest accumulates or becomes payable periodically.

For NBFC public deposits, RBI requires the receipt to state the deposit date, depositor name, amount, interest rate, and repayment date.

Bajaj Finance Fixed Deposits combine these benefits with attractive returns of up to 8.15% p.a., backed by AAA/Stable ratings from CRISIL and ICRA. Open FD.

The exact terminology differs across institutions, but term deposits commonly offer cumulative and periodic-interest payout structures.

Cumulative deposit

Under a cumulative option, interest gets accumulated according to the applicable compounding method and becomes payable with principal at maturity. This structure can suit investors who do not require regular interest payments during the deposit tenure.

Non-cumulative deposit

A non-cumulative deposit distributes interest periodically instead of accumulating the entire interest amount until maturity.

Bajaj Finance Fixed Deposit currently provides monthly, quarterly, half-yearly, annual, and maturity-based payout choices across eligible deposit structures.

Investors can select an option according to their income requirements, tenure, applicable interest rates, and liquidity needs. Importantly, institutions may use “TDR” differently, so investors should rely upon the issuer's official product terminology rather than assuming uniform definitions.

Explore non-cumulative and cumulative FD options offered by Bajaj Finance.

Term deposit receipt

A term deposit receipt provides important evidence about the investment and the financial institution's repayment obligation under applicable terms.

Common information includes:

Uses and significance of term deposit receipts

A deposit receipt provides a clear reference for managing and verifying the underlying investment throughout its tenure.

Deposit verification

The receipt helps investors confirm the principal amount, interest rate, deposit number, maturity date, and other investment particulars.

Deposit renewal

Investors can review the existing tenure, rate, and maturity information before deciding whether they want to renew their deposit.

Premature withdrawal

Deposit details may be required when requesting premature closure, although digital servicing can reduce dependence on physical documents. For Bajaj Finance Fixed Deposit, premature withdrawals between three and six months receive principal without any interest payment. After six months but before maturity, interest is generally payable at two percentage points below the applicable rate for the completed period.

Loan against deposit

Eligible Bajaj Finance Fixed Deposit holders may access loans up to 75% of their deposit value, subject to applicable conditions.

This facility may provide liquidity without requiring eligible investors to close their deposit prematurely.

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

The receipt itself should not drive the investment decision because the underlying deposit terms determine the investor's actual financial outcome.

Consider these factors:

• Interest rate: Compare applicable rates for your preferred investment period.
• Tenure: Select a period matching when you expect to need the money.
• Issuer creditworthiness: Review available ratings and the institution's financial standing.
• Liquidity: Understand whether premature withdrawal is available and under which conditions.
• Interest payout: Decide whether accumulated or periodic interest better suits your financial requirements.
• Taxation: Consider how applicable interest income may affect your taxable income.
• Nomination: Ensure nominee information remains accurate and updated.
• Loan facility: Check whether borrowing against the deposit is available when liquidity becomes necessary.
• Documentation: Verify the deposit receipt immediately after receiving it for incorrect details.

Investors should avoid choosing a deposit solely because one issuer displays a higher interest rate.

Choosing a reputed issuer like Bajaj Finance adds an extra layer of confidence to fixed-income investing. Invest in AAA/Stable rated FDs now.

Advantages of Term Deposit Receipt (TDR)

The deposit receipt improves transparency by creating a clear record of the terms connected with the underlying investment.

Potential advantages include:

• Documents the principal and interest rate
• Records the agreed maturity date
• Helps verify investment ownership
• Provides a unique reference for servicing
• Records important payout information
• Supports easier maturity and renewal tracking
• Helps identify errors in booked deposit details

The underlying term deposit may additionally offer predetermined returns, nomination options, payout flexibility, and loans against eligible deposits.

A term deposit receipt is primarily documentary evidence containing the important conditions associated with an investor's fixed-term deposit. However, terminology differs across financial institutions, and investors should verify exactly how their bank or financial institution defines “TDR”. For Bajaj Finance Fixed Deposit, investors receive a Fixed Deposit Acknowledgement followed by an Electronic Fixed Deposit Receipt after successful booking.

Bajaj Finance Fixed Deposit currently offers tenures from 12 to 60 months and rates up to 8.15% p.a. for senior citizens. Customers below 60 can currently earn up to 7.75% p.a., while eligible senior citizens receive up to 0.40% p.a. additional interest.

Calculate your expected investment returns with the help of our Fixed Deposit and Recurring Deposit calculators.