Banks and financial institutions offer risk-free investment options in the form of fixed and recurring deposit accounts. Both of them come with assured returns that get predetermined. So, you rest assured to get the prefixed earnings at the end of maturity.

Now, both of them have a straightforward account opening process. While you invest lump-sum in a fixed deposit, recurring accounts allow you to make your investments in instalments. No matter which one you choose, both of them contribute towards growing your idle funds.

Let us understand the account opening process for term deposits:

Fixed deposit: Opening an FD is convenient with the bank you already have a savings account with. Many financial and non-banking companies also allow you to open without an existing bank account. So, it is all about your preference.

Once you choose your financial institution, opening the deposit is an easy process, thanks to digitisation. Also, it lets you manage your account, calculate fixed deposit interest rates, renew and close it with online banking apps.  However, the exact process varies from bank to bank. Find the standard steps involved as follows:

1. Visit the website of your chosen bank or non-banking company
2. Login with your ID if it is your existing bank or creates a new one
3. Select the option to open the deposit account
4. Provide the details for the tenure, principal amount and nominee
5. You have to complete the know-your-customer process if you do not have a savings account with the bank. This involves the submission of ID proof, address and personal details. These get automatically updated if you select your existing bank
6. Confirm the terms and make payment via net banking
7. Download the deposit receipt for future reference

Recurring deposit: You can open an RD account with a minimum investment ranging between Rs. 500 to Rs. 1,000. The tenure available to lock in your funds is from six months to ten years. It is available in different categories for senior citizens, minors, Non-Resident Indians, etc. It is best to check this to opt for the right type and earn higher interest.

Like fixed-term deposits, you have the option to open them either with your existing bank or with any other financial company. However, as you are required to make regular deposits, it is best to opt for the former option for convenience. Find the standard process of opening RD online as follows:

1. Activate net banking on your existing bank account
2. Visit your bank's website and log in with your password and ID
3. Choose the option to open e-RD or find it under the section of deposit accounts
4. Select the required details for your tenure, monthly deposit amount, etc.
5. After submitting, your account gets opened instantly. You can now set standard instructions for automatic monthly deposits through your savings account.