Question 1

What is a fixed deposit?

Accepted Answer

A fixed deposit (FD) is an investment instrument that allows you to invest a lump-sum amount for a chosen tenure to earn interest at a fixed rate. You get a higher interest rate on a fixed deposit than on a regular savings account.

Question 2

What is a recurring deposit?

Accepted Answer

RD or recurring deposit is a type of deposit that enables you to invest smaller amounts at regular intervals while giving you interest similar to a fixed deposit.

Question 3

Is there a minimum amount or tenure for a term deposit?

Accepted Answer

The minimum amount for a fixed deposit is Rs. 5,000 while it’s Rs. 500 for a recurring deposit. The tenure can range from a few days to five years. You can choose to invest the RD amount on a daily, weekly, monthly or quarterly basis.

Question 4

What interest rates does digibank offer on term deposits?

Accepted Answer

To know more about the interest rates on term deposits, please download our digibank app, or visit the ibanking website.

Question 5

If I reinvest my term deposit at the end of the tenure, will the interest rate stay the same?

Accepted Answer

No. The current interest rate at the time of the creation of the new deposit will apply.

Question 6

Can I encash my deposit before the maturity date?

Accepted Answer

Yes, you can terminate a deposit at any time, but there are penalties for the early closure. Use the "Manage" tab in the "Term Deposits" section of the digibank app to know more.

Question 7

Are my deposits insured?

Accepted Answer

Yes. Your deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI), for up to ₹ 5,00,000 (5 lakh rupees).

Question 8

What happens when my deposit matures?

Accepted Answer

When your deposit matures, you have the option of reinvesting the balance in a new deposit, transferring the money into your digiSavings account, or only transferring the interest to your account and reinvesting the original investment in a new term deposit.

Question 9

How can I set up a recurring deposit?

Accepted Answer

Setting up an RD is an easy and hassle-free process. You can do so via the digibank app on your smartphone or visit the digibank ibanking website, log in and select "Deposits (FD/RD)" in the navigation menu. Post that, click on "Open new deposit" and follow the instructions as shown on the website. You have the choice of setting up the frequency of the pay-out, the total amount, and the duration for which you want to have the deposit. In just a few minutes, you can open a deposit with DBS Bank and maximise your savings!

Question 10

Will my deposit be automatically reinvested on maturity?

Accepted Answer

It will be automatically reinvested only if your instructions while opening the deposit mention reinvesting the amount on maturity. You can edit your settings in the "Deposits (FD/RD)" section of the digibank app., select the deposit you want to view or change and then click on the "Manage" tab.

Question 11

Is there a cut-off date when I can no longer change the maturity instructions for my deposit?

Accepted Answer

No. You can change the maturity instructions at any time during the tenure by visiting the "Manage" tab in the "Deposits (FD/RD)" section of the digibank app.

Question 12

What if my digiSavings account has insufficient funds for my recurring deposit payment?

Accepted Answer

In case your digiSavings account has insufficient funds, and we're unable to debit the payment, your term deposit will continue, but the amount and interest you receive at maturity will be adjusted based on the missed payments. Fees may also be payable.

Question 13

If I choose to reinvest my deposit on maturity, will I be notified when it is reinvested?

Accepted Answer

Before maturity, you will receive notifications by a combination of SMS, email and in-app messages. If you choose to reinvest upon maturity then, we will do so and notify you about it once it is done.

Question 14

Is there a charge for insuring my deposits with digibank?

Accepted Answer

No, we do not charge you for opening a fixed deposit with us. The bank covers the applicable cost.

Question 15

Can I change the amount and frequency of my recurring deposit?

Accepted Answer

No. Once the RD has been created, changing the payment amount or the frequency is not possible.

Question 16

How many deposits can I hold at the same time?

Accepted Answer

You can open as many fixed deposit accounts as you wish. There is no limit.

Question 17

What if my deposit matures on a weekend or public holiday?

Accepted Answer

In case your term deposit matures on a weekend or a public holiday, the maturity will automatically happen on the next working day. However, the deposit will continue to earn interest for the extra days.

Question 18

When will interest be paid on my deposit?

Accepted Answer

The Interest on your fixed deposit is credited to your account on maturity or premature termination. But an early termination may result in an interest rate lower than the current rate.

Question 19

Can I see how much interest has been earned on my deposit?

Accepted Answer

To find out how much interest you’ve earned on your FD or RD, visit "Deposits (FD/RD)" section of the digibank app.

Question 20

What are the requirements for opening a digibank term deposit?

Accepted Answer

If you have a digiSavings account, you can easily open a term deposit. For a fixed deposit, the minimum amount you need to invest is Rs. 5,000, and for a recurring deposit it is Rs. 100.

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