Can I open a fixed deposit without opening a savings account?

From time to time someone leaves a comment inquiring if a fixed deposit can be opened in a particular bank without having to open a savings account there as well.

I checked this with someone who works in a public sector bank, and he told me what I suspect most of you already know.

He said that most (if not all) public sector banks require you to open a savings account before you open a fixed deposit because that makes it easy for them to deposit the interest and then the final proceeds at the time of maturity.

This may not be true for private sector banks, but based on the conversation – I think it is wise to assume that if you want to open a fixed deposit with a bank they will require you to open a savings account as well.

While this never appeared to be a big issue to me, it seems that there are people who find it a hassle to open a savings account for a fixed deposit.

My guess is that they already have a few bank accounts open and don’t want to add any more complexity to their life.

However, with RBI planning to deregulate savings rate there will be difference in the interest rates that various banks offer on the savings account, and at that time this question will gain more importance.

I’d like to open this up for discussion and see if you know of any banks that allow you to open a fixed deposit account without a savings account?

This question may not affect you right now, but might be something to watch out in the next year or so.

37 thoughts on “Can I open a fixed deposit without opening a savings account?”

  1. hi sir,I wanted to deposit 65lakh(fixed). Suggest me the banks from where i will get more interest after depositing it….?

  2. I would like to keep my money in different Banks with such amount in FD so that I could escape TDS. Is there any logic if I have to open SB accounts and keep a minimum deposit in the SB specially in Banks like ICICI or Axis Bank where minimum balance requirement is Rs; 5000/-. Further more if a family of five keeps FD with five Banks they will have open 25 accounts in all . Is it possible to maintain all these accounts with minimum transactions required. I am of the opinion RBI should regulate by barring Banks to insist for SB accounts for FD accounts

  3. hello sir,
    my aunt wanted to make a fix deposit in any national bank with one month term deposit. can you suggest me to choose the good one . and another inquiry is she don”t have the PAN card and she wanted to deposit 3.5 lacks
    so please suggest me as early as possible which bank is more secure.

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