Frequently Asked Questions

A fixed deposit is one of the most popular ways of saving money in India. It is a safe investment that offers good returns and is easy to open. You invest a lump sum money in a fixed deposit scheme at an agreed interest rate and then receive your investment amount alongwith the interest on maturity of the scheme. The rates of a fixed deposit are fixed, higher than your regular svings account and the investment is safe from any market fluctuations.

FDs are one of the safest ways to invest and grow your money. Unlike market-led investments where returns fluctuate over time, the returns for your fixed deposit are fixed when you open an investment. Even if the FD scheme interest rates change over time, your FD will continue to grow at the rate you booked the scheme.

Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors. The agency insures all kinds of deposit accounts of a bank, such as savings, current, recurring, and fixed deposits up to a limit of Rs. 5 lakh per account holder per bank. All your FDs booked with a bank (and not NBFCs) will thus be insured upto INR 5 lakh.

Fixed deposits are offered by banks, NBFCs and India Post Office. The FDs you book with NBFCs like Shriram Transport Finance Company Ltd are also known as Corporate FDs and tend to offer higher interest rates.

As per Section 451(c) of the RBI Act, Non-Banking Financial Corporation (also called as NBFC) is a company that carries the business of a financial institution without a full banking license. The functions of the NBFCs are managed by both the Ministry of Corporate Affairs and the Reserve Bank of India. NBFCs offer a variety of services like savings & investment plans, lending schemes, insursance, etc. They also offer fixed deposits for customers to invest in.

We have a wide range of fixed deposit schemes where you can start investing from as low as INR 1000. We have fixed deposit offerings which you can

The bank provides a computer-generated statement that acts as a proof of ownership or investment when you open a FD. This document is the FD Advice.

FD advice usually gets delivered on the registered email id post successful booking of your Fixed Deposit. This FD advice is directly shared by the bank within 07 days of FD booking confirmation.

The frequency of interest payouts is currently aligned with the maturity date of your Fixed Deposit (FD), meaning the interest amount is credited only at the time of FD maturity

The compounding frequency for Fixed Deposits varies by institution. For banks, interest is compounded quarterly. At Bajaj, the compounding frequency is annual, while at Shriram, interest is compounded monthly.

Most banks and NBFCs offer an additional interest rate of upto 0.5% over the regular fixed deposit interest rates for senior citizens thus making it even more attractive for senior citizens.

Currently we are not able to process fixed deposit requests for users in this category.

Currently we are not able to process fixed deposit requests for minors.

These permissions are part of the process to verify your mobile number. To simplify, we need this permission to be able to verify your mobile number by sending an SMS. There's no concern for worry as your phone is secure and we use these permissions only for the purpose of verification and prevent fraud.

Having a dual SIM phone does not hold you back from investing in fixed deposits with us. We recommend you to use the SIM which is registered with a bank account to proceed with authentication.

Yes you can try again to register yourself. We recommend you to use the SIM which is linked with your aadhar for the purpose of authentication.

We verify your mobile number to create a secure account for you. Doing this we are able to create a smooth app experience while ensuring safety of your account.

Currently we can only process fixed deposit requests for individuals having an active PAN linked to their name.

To book Fixed Deposits, we need to verify individual PAN maintained with the regulated authorities. In case of a mismatch, the booking can not be completed. The PAN should belong to you and be entered correctly.

The name linked to the PAN should be yours. This is required for the purpose of successful verification of your identity and for KYC purposes. We will suggest you to please have your correct name mapped with your PAN.

Aadhar is required for successful identification and setting up KYC for your account. It is a mandatory document for us to be able to process your FD request.

We do not require you to provide us with a physical copy of Aadhar. We have built a safe and secure platform to help you with smooth onboarding by using facilities like the digilocker and CKYC to verify your Aadhar and other documents.

DigiLocker is a government initiative under its Digital India project. It is used for storing document and verifying credentials. DigiLocker can safely store and verify your important documents like PAN card, driving licence, Aadhaar card, school marksheets, insurance papers, etc.

You can retry using the correct details, incase it still does not work, we recommend you to retry after some time. If it still does not work for you, do reach out to our support team for helping you out.

For successful FD booking, Name as maintained with Aadhar should be same as maintained on PAN. In case of a mismatch scenario, you may retry by correcting with the PAN or Aadhar Card number.

You can use the "add" button on the address choice screen for adding an address which is not listed already.

We consider the address received from Aadhar as your permanent address. You may select or add your current address to continue with FD application process.

Yes your permanent and current address can be the same, thus you can select your permanent address as your current.

These details are required by the bank for being able to create your fixed deposit and ensure communication if required.

Video KYC is required to complete the KYC verification step as mandated by the RBI.

Stay assured, if you have made the payment already, we will notify you when the bank officers are available next during bank working hours. Also in case of video KYC not getting completed in 03 days, your money will be safely refunded to your bank account.

You can complete your video KYC between 8 AM and 11 PM, Monday through Saturday, with all banks.

There is nothing to worry. If your video KYC step was not able to complete, you can always retry during the available banking hours within 02 days of FD booking.

Your video KYC details get verified by bank officers, which may take some time upto 03 hours. You can always track the video KYC and FD confirmation status on 'My Investments' tab.

Video KYC is the last step to verify your identity and book your FD successfully. Your money is safe with the bank and your interest starts accumulating from time of payment itself. In case of any issues with VKYC, your money shall be successfully refunded within 7 working days.

Please keep your PAN Card and a blank paper with a pen ready for the VKYC process.

CKYC refers to Central KYC (Know Your Customer), an initiative of the Government of India. It helps in skipping the lengthy process of onboarding by making all relevant KYC information available in one place. With your consent, we will be able to use this facility to ensure a safe and faster onboarding experience.

We will use the DigiLocker facility to validate your identity and do a KYC using verification of documents like Aadhar and PAN.

For the purpose of ensuring a smooth and secure onboarding flow we require certain permissions from you. These are used to fetch information to validate your personal details, prevent fraud and also KYC purposes. We do not use these information for any other purpose than creating and validating your account.

Your data is only used for account creation and KYC purposes, and this is not shared with any third-party. The safety of your information is our top priority.

Do not worry, if your payment has failed and the amount was deducted from your account it shall get refunded in next 2-4 working days. If you are still interested in purchasing an FD you can place another request for the same.

"Third party limit error: Every bank has a daily limit that you can spend via online transactions. For most banks this is set at Rs 25000 - Rs 2 lacs. Please login to your net banking and chek this limit. If you are trying to make a payment for more than this limit, then the transaction will fail. Most banks allow you to increase the limit via net banking.
UPI limit error: For UPI limit is Rs 1 lac in a day. Please check this limit. It is possible that you are exceeding this. You might have made other payment through UPI in the day. Bank connection error: When you are making a payment, you are redirected to your bank page or UPI app page. These pages then again connect with your bank. Sometimes while making a payment, it is possible for this connection to break. In these cases transaction fails."

"Do not worry, your money is absolutely safe. It is extremely unlikely that you would not have received the funds within 7 working days. Please do check again if 7 working days have been actually completed or not and do check your bank account statement for any refund transactions."

You can click on Go to Dashboard, and can track the FDs as part of your Pending Investments tab. We will notify you on successful payment.

It can take some time for the bank to verify your application, we will notify you with an SMS once the FD is approved, it can take upto 24 hours sometimes. The same can also be tracked on the app dashboard.

Yes you can invest in multiple FDs with different providers. You can also have multiple FDs with the same provider.

As part of premature withdrawal, interest rate will be applicable for the tenure for which the FD was maintained. In addition to this, there also will be a penalty rate applicable. Thus the net interest rate gained shall be a sum of the applicable interest rate and the penalty applied.

Your money will come within 2 working days after placing withdrawal instructions successfully to the account details added during the FD booking process.

There are no withdrawal processing charges i.e. you do not have to pay anything from your pocket to use the withdrawal facility.

You will receive SMS/ notification from the bank regarding the crediting of money in your account. The FD booking will automatically be removed post withdrawal.

You can make a premature withdrawal by going to the respective FD details page by selecting the FD from the My Investments dashbaord.

Yes, your Fixed Deposit can be liquidiated once the lock in period has been completed.

The FD is rejected in the case of a discrepancy in the information provided by you. You can retry with correct details.

You can view your ongoing investments in the "My Investments" section of the application.

Upon maturity, the funds from your Fixed Deposit (FD) will be credited back to your payout account. You can refer to your fixed deposit receipt to find the details of the payout account.

As part of the onboarding process, your details are verified by our banking partner including your mobile number. In case of a mismatch, your application will not be accepted by the bank.

A payout account is the one where your fixed deposit investments will be credited on maturity. This is the account where you shall receive your money back

Click on the Search tab, enter your bank name and you will be able to select your bank to add as the payout account for your fixed deposit.

For us to capture your bank details as the payout account, should be an active bank account. This is important for us to be able to credit the money on maturity or withdrawal successfully to your bank. Your bank status is as received from your bank In this scenario either you can add another bank details, which is active or check with your bank for your account status as maintained with them.

The name linked to your bank account should be yours and correct. Incase it is incorrect with the bank, you can either use a different bank account or get this updated with your bank (if this is your only bank account).

We verify your bank account by transferring INR 1, thus you may receive an SMS from your bank informing you about the credit.

You can retry again after sometime or use a different bank account.

Currently we can only process fixed deposit requests for users who are tax residents of India.

A person is said to be a resident of India in case she has spent either 182 days or more during the FY; or has spent 365 days or more in India during the four preceding years and is in India for a period of 60 days or more during the financial year.

As of now we not have the functionality. The TDS is only deducted if the total interest from all sources with bank exceeds Rs 40000 for a normal citizen and Rs 50000 for a senior citizen.

Interest earnings from your fixed deposit are taxed as per your tax slab. For e.g. if you are in a 20% tax bracket and you made a 6%1 year FD of Rs 1 lac. Your total interest for the year is Rs 6000. The tax that you will have to pay while filing will be 20% of 6000 = Rs 1200

No it is not. But we recommend to add nominee against your Fixed deposit.

Yes, in that case Guardian details are mandatory to be captured.

Any individual be it the family member, relative, friend or anyone any other person whom the account you trust can be added as a nominee.

Currently, you can only update the nominee information during the booking process.

Each bond matures on a fixed date. This means that the tenure for which you are buying the bond can change depending on when you buy it. For example if a bond matures on Dec 10, 2024 and you buy it on Nov 10, 2024 the tenure of the bond will be 1 month. Similarly, if you buy it on Oct 10, 2024 the tenure of the bond will be 2 months.

Debt instruments come with risks like interest rate risk, credit risk, inflation risk, and liquidity risk. The value of bonds can fluctuate with changing interest rates and issuer creditworthiness.

Karat Wealth charges a nominal fee for bond transactions. This includes a processing fee and may include additional charges depending on the specific bond and transaction size.