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

by Manshu on May 19, 2011

in Fixed Deposits

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.

{ 27 comments… read them below or add one }

Deepesh May 19, 2011 at 6:18 pm

I have already made FD in Karur Vysya bank without opening a Savings Account.
KVB was offering 10.25% on 555 day FD. I also wanted to check if there is any further increase in interest rates on FD post the RBI rate hikes.


Manshu May 19, 2011 at 6:26 pm

It doesn’t look like they hiked it esp. because the 555 days option is not present in their website at all. Here is the link:


Ajay May 23, 2011 at 5:05 am

Same here. KVB allowed me to open a FD without a SB. They told that the final proceeds can be NEFTed to my account in any other bank in India πŸ™‚


valueviews May 19, 2011 at 6:21 pm

You can open FD with Axis Bank without saving account


Manshu May 19, 2011 at 6:25 pm

Thanks for that info!


Mohan May 19, 2011 at 6:50 pm

At Lakshmi Vilas Bank can open an FD without Savings Acc.


Madhav May 19, 2011 at 9:15 pm

You can open FD without savings account. However, depending on the amount bank may require certain documentation like address proof etc., which you need to give for FD separately if you don’t have the SB A/c. Further, generally public sector banks insist on SB to open FD.


Raghu May 19, 2011 at 9:20 pm

In general, you can open a fixed deposit without a savings bank account. But then again, in every case, they require you to provide address proof and introduction. This hassle goes off if you have a savings bank account so that linking is easier.

Another point to note – bankers urge for a SB account if you are opting of any interest payment other than cumulative payment at the end. This is to facilitate easy interest payments.

Of the banks that are in my vicinity, I know that KVB, CUB and Canara Bank accept FDs without requiring an SB a/c.


austere May 19, 2011 at 11:11 pm

Expect to receive a banker’s cheq on maturity when my SBI deposit matures in July.
No account with SBI.


Indian Thoughts May 20, 2011 at 1:15 am

Raghu told for what I came here. Its not mandatory to have savings account for opening FD, but then you will need to give address proof and introduction.


Manshu May 21, 2011 at 12:46 pm

Thanks IT.


Sudip May 20, 2011 at 4:14 am

It’s not mandatory but true some nationalize bank insist for SB.


ANIL KUMAR KAPILA May 20, 2011 at 5:17 am

As far as I know Fixed Deposit Account can be opened in IDBI Bank , Punjab National Bank and State Bank Of India and its associate banks without opening a savings account.


Manshu May 20, 2011 at 10:28 am

Thanks to all of you for your great comments and clearing it up that though not mandatory a savings bank account does make life easier. I will edit the post accordingly!


Vijendra Kumar H. June 15, 2011 at 11:52 am

I have opened the FDs in private banks as well as public sector banks without having a SB account. It is not at all necessary to have a SB account for opening SB account. But most of the banks insist on opening a SB account while opening the FD. If you are rigid and clearly tell them that you don’t want to have a SB account with them, they will proceed with just FD. If they deny, you can even contact branch manager. Then definitely they will oblize. This is from my experience.


Manshu June 15, 2011 at 8:03 pm

Thank you Vijendra!


Afzar June 26, 2011 at 1:34 am

How Much FD we can deposit Maximum with out any government restrictions.


Manshu June 28, 2011 at 8:06 pm

There is no restriction on the maximum amount as far as I know.


Shalini June 27, 2011 at 10:22 am

I opened a FD with Axis bank without a savings account. Just had to be insistent that I dont want another Savings account in my life, and after a bit of dilly dallying, it worked.


Manshu June 28, 2011 at 8:05 pm

Thanks for that comment Shalini!


Brijesh chauhan July 3, 2011 at 1:42 pm

Requested sir,
My name is brijesh kumar singh. S/o satya prasad sing. Vill.kamarjee. Post kamarjee.dist. Sidhi(m.p.)india. Pin 486661.
Sir my have recives one massege thaat messege displayed on a certificate of deposi and these statad of reserve bank of india.
Reference code: RBI/AN/PLC-118/WB- –
Deposit no.: BA0581380660001.
Deposit code: RBI/AN/PLC/DEPO 09
Please solve my problum.


Nisachar July 4, 2011 at 9:18 pm

Yes you can do a fixed deposit at any bank without any sb account only thing is that you need to maintain still the KYC(KNOW YOUR CUSTOMER) norms that is submitting id proof and picture and can proceed with the FD.


Manshu July 10, 2011 at 12:08 am

Thanks Nisachar.


aashika parmekar September 1, 2012 at 10:04 am

wht things r required to open fixed deposit a/c? how many no. of customer visit bank per day to make fixed deposit a/c?


ruchi September 15, 2012 at 9:43 pm

Hello sir,

my father have done FD of 555 days scheme on SBI branch as he has SB account on the same branch and it is going to be get mature in few days.he wants to transfer that amount on the same account through which he has done his FD but the problem is my dad’s office timing is from 5am to 8pm and he won’t be able to go to the bank to claim that amount also he dun want to renew the FD.So,it is possible that if he provides me the authorization letter then bank will transfer that ammount to the my dads account of the same branch.


Ajay September 18, 2012 at 5:23 pm

Have a letter that requests the manager to transfer the amount to the SB account and not to renew it. Get it signed by your dad and you can submit to SBI.


P Badala November 15, 2012 at 10:13 am

Linking of opening FD account with that of SB account is totally incorrect, However Banks try to cox you to open SB account so it adds to there business But if you insist for FD Account without SB account, bank can not refuse,As per the RBI guide lines, for FD account SB account is not mandatory. However banks can insist for completing theKYC norms, ID Proof, Address proof and PAN number for opening FD account.


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