5 things to know before you open an Fixed Deposit account in Nepal

A fixed deposit account is basically an investment that is simple and safe and needs a one-time deposit. During this time, the deposit will accrue interest. You will receive interest on your money returned after the tenure. To be precise, fixed deposit means earnings with savings! Thus, for the majority of conservative investors, these fixed deposits remain a popular savings option. 

So, if you are thinking of opening a fixed deposit account in Nepal, you must look for some prerequisites. To help you out, we have come up with a detailed blog on what aspects you must focus before opening a fixed deposit account.

5 Things to know before opening an Fixed Deposit Account in Nepal

1. Type of Fixed Deposit opening- Online or offline

To open a fixed deposit account, you can avail either offline or online medium. If you are into face-to-face visits, then you can visit your desired bank near you, ask the bank official for the forms, and provide needed documents. You can receive your fixed deposit account the very day or after some days. But, if you want to avoid traveling and make the most of the online medium, then you can apply online. You can look for an online Fixed Deposit Account opening on the desired bank’s website. Sometimes, customers who already have a normal savings account may want to have a Fixed Deposit Account; in this case, they can apply for Fixed Deposit with the bank’s mobile app.

[Read Our Blog on How to Open a NIC ASIA Fixed Deposit Account in Nepal Through a MoBank App? ]

2. Maximum and minimum Fixed Deposit amount limit

Every fixed deposit account has a minimum and maximum limits. These amounts vary from bank to bank. Nowadays, it is customary to notify banks in advance of making large deposits. The fixed deposit account can be as low as Rs 10,000. So, you can check the amount and apply for the desired fixed deposit package.

3. What is the Rate of interest in a Fixed Deposit

Interest is the only benefit people look for when opening a Fixed Deposit Account. For depositors, the interest rate is quite crucial. The deposit’s term affects the interest rate. Depending on the length of the deposit, banks may offer various interest rates. The interest rate for fixed deposit accounts in Nepal is AROUND 10 to 12 %.

4. What is the tenure of the Fixed Deposit?

Tenure is the minimum period of time that you must maintain your money in a fixed deposit. The term or length of a fixed deposit varies between banks. Interest rates are often lower for shorter durations and higher for longer ones.

Fun Fact: NIC ASIA Bank offers Fixed Deposit for the tenure of  3 months to 10 years.

5. What can be the Penalty for premature withdrawal?

A penalty for premature withdrawal is an amount charged by the banks when the depositor takes out his/her money from their bank before the date of maturity or the end date of the Fixed Deposit Tenure. 

For example: If you had made a Fixed Deposit for five years, but due to unavoidable circumstances, you had to withdraw some amount or whole sum in-between the given time, in such case, the bank imposes a penalty charge. The penalty depends on the bank’s policy.

Which is the best Fixed Deposit Account in Nepal?

You can find numerous commercial banks in Nepal that offer the best deals in their Fixed Deposit Accounts. One of the best banks in Nepal, NIC ASIA Bank, also provides its fixed deposit account aka Sarbashrestha Muddati Khata which has a plethora of benefits. 

Key benefits of Fixed Deposit Accounts of NIC ASIA Bank are:

• Insurance benefits up to Rs 84 Lakhs.
• 5 years of Free Debit Card, Mobile banking and Internet Banking.
• Except for Remittance Muddati Khata, five years of Free Demat and Meroshare Charge is available.
• Free cash withdrawals from any ATMs (for 5 years).
• Free locker rental and waiver of 100% locker margin (for 5 years).
• A dedicated relationship management.
• You can open a Fixed Deposit Account Online as well as with a physical visit to the bank.

The Sarbashrestha Muddati Khata focuses on achieving the needs of customers who are looking for long-term investments that yield maximum profit.

Relish Best Benefits of Fixed Deposit in Nepal with NIC ASIA Bank

Talking about all the fixed deposit products of NIC ASIA Bank, we have

• Sarbashrestha Muddati Khata
•  Sarbashrestha Sthaniya Muddati Khata 
• Sarbashrestha Remittance Muddati Khata 

Sarbashrestha Muddati Khata is beneficial for individual customers to achieve financial goals, while Sarbashrestha Sthaniya Muddati Khata is for local residents of local authorities who have a sole banking relationship with NIC ASIA Bank. Another product, Sarbashrestha Remittance Muddati Khata, is for individuals who are engaged in foreign employment. 

To know more, please contact us , we will be happy to help you in selecting your Fixed Deposit Account.

Also, if you find this article appealing and would like others to know about the Sarbashrestha Fixed Deposit Accounts, please share this among your friends and family.