Closing a Fixed Deposit (FD) is a simple process and can be done online as well as by visiting the bank branch. You can close an FD before maturity and after maturity. The process of closing the FD by visiting the branch is same for most of the banks.There are two methods of closing an FD:
Close FD online through internet banking
Close FD offline by visiting bank branch
Steps to Close an FD Offline by Visiting Branch (Premature)
Visit the bank branch and get a form for premature withdrawal.
Fill the form with necessary details such as name, bank account details, and FD number among others.
Submit the document with the bank and they will process your request.
Once the FD is closed, the funds will be credited to your savings account.
Steps to close an SBI FD online before maturity
Visit SBI's website and click on the Fixed Deposit tab.
Click on the ETDR/STDR (FD) tab under the Fixed Deposit tab.
Click on the Close A/C Prematurely' tab.
Your FDs will be listed in this section.
Select the FD you want to close and click on the proceed button.
Verify your FD detail such as amount, date of maturity and so on.
Mention the reason for closing the FD in the 'Remarks' section and click on the 'confirm' tab.
You will now receive a 'high security password' on your registered mobile number.
Enter the 'high security password' and click on the 'confirm' tab.
You will receive a message confirming that the FD has been closed.
The FD amount will be credited to your savings account.
Note: If you want an instant closure, you need to initiate the FD closure request between 08:00 AM IST to 08:00 PM IST on the SBI website. A closure request post 08:00 PM will be taken into consideration for the next working day.
Steps to close HDFC FD online before maturity
Visit the HDFC website and login to your NetBanking account with your Customer ID and IPIN (NetBanking Password).
Click on the Fixed Deposit tab from the Menu bar situated on the left side of the page.
Select the 'Liquidate Fixed Deposit " option under the Fixed Deposit tab.
You will see a list of your fixed deposits in this section.
Select the FD account number you want to closet from the FD lists.
Click on "Continue" and "Confirm" the details entered.
You will be sent to a page that will confirm closing of your fixed deposit.
Note: This facility is available to Fixed Deposits held under "Sole Owner (SOW)" relationship only.
Steps to close ICICI FD online before maturity
Visit the ICICI website and login to your NetBanking account with your Customer ID and IPIN (NetBanking Password).
Click on the 'My Accounts' tab followed by the 'Deposits' tab.
Click on the 'Service Request' option under the 'Deposits' tab.
You will see the 'Closure/Renewal of Existing Fixed/Recurring Deposit' option. Click on it.
Click on the 'Request for' tab and select 'Premature Withdrawal of FD' from the dropdown menu. Click on the 'Continue' tab.
Confirm the FD details displayed in the section and click on the 'Submit' tab.
In order to authorise the transaction you will need to enter digits from your debit card grid.
You will receive a one-time password (OTP) on your registered mobile number.
Enter the OTP and click on the 'Submit' tab.
You will receive a message confirming that the FD has been closed.
Steps to close an FD on maturity
Once you close an FD after on maturity, you will need to submit the deposit certificate. You could also be asked to submit a signed form indicating that the FD may be closed on the maturity date. The fixed deposit amount including the interest will be transferred to your savings account on maturity. You can renew or close the FD on the maturity date via online.
FD closure on maturity
If the maturity period of your FD is over and you have not taken any action, bank will have two ways to deal with your matured FD.
The bank may renew the FD automatically for one year or for the original term of the FD on the due date.
The FD will get liquidated on the due date and the bank will transfer the proceeds to your savings account.
Note: You should read the terms and conditions on the deposit certificate to learn about the treatment your FD will receive on maturity.
How to minimise unplanned deposit closure?
Most of us break our FDs prematurely, in an unplanned manner, to meet are sudden financial goals. This will cost you dearly and you will not be able to get the maximum returns out of the term deposit. Though the penalty amount may look small, when it is calculated, it does cause a certain sizable loss.
Formulae for calculating interest rates for premature closure:
Rate of interest for premature withdrawal = interest rate on actual deposit period -1%
There are many banks that do not levy a penalty for premature withdrawal. Invest in a bank that has this facility.
Take a loan on the deposit, instead of closing the deposit prematurely. Instead of breaking the FD account, you can always take a loan/overdraft against the term deposit. Most banks allow customers to take a loan of up to 90% on the deposit amount.
Are there penalty charges for premature closure of FD?
Yes. Banks usually levy a certain penalty amount for withdrawing the FD account prematurely. The penalty amount may differ from bank to bank and the type of deposit held
Can you close an FD online if it was not opened online?
Generally, if the FD was not opened online, it may not reflect in your net banking account. Although, with some banks the FD can be closed online even if it was not opened online. However, you can request your customer care to help you with the online closure.
What are the penalty charges for premature closure of FD?
Penalty will be a certain percentage of the interest amount earned. This percentage charged will vary from bank to bank.
Can the FD account be broken without any penalty?
Generally, banks charge a penalty for breaking FD, however, there are some banks that do not charge a penalty. It should be noted that if you have held the deposit for 7 days, most banks will not charge a penalty.
Can I withdraw the account prematurely if there is a specified lock-in period ?
No, this will not be possible.
Can I break my tax-saver FD, which comes with a lock in period of 5 years?
No. Any type of tax-saver FD cannot be withdrawn prematurely.
Should NRIs who return back to India close their NRO, NRE FD?
Yes. NRIs who return back and loose their NRI status can ideally close their FDs and make other investments.
In case of a joint account, is there a need to obtain the signature of all account holders?
Yes. You need to take a signature of the joint account holder to close the FD.
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I have invested some money as a Fixed deposit in HDFC Bank and the interest rate is not that much great because they are giving interest as compared to others. I have invested the money of Rs. 3L and there is a locking period of 5 years. Its 7% interest rate. If they are increasing the interest rate, it would be fine. Since I do all my transactions with this bank, I have selected same for my FD as well.
I have chosen my fixed deposit scheme from State bank of India because I'm maintaining my salary account with them and they provided rate of interest is fine for me. I have invested the money of Rs. 2.75 lakhs. There is a locking period of 45 days. They are giving interest rate of 4.5%. Overall, I'm satisfied with their services.
I have been investing the money of Rs. 3 lakhs for the fixed deposit. I have selected Kotak mahindra bank for the FD because their net banking facility is very different when i compared to other. I can access everything regarding the account hence its easy to handle the transactions. I'm not sure about the interest rates. 7 months before, i have invested the money.
Its because of the competitive interest rates, i have selected the Fixed deposit in Kotak Mahindra bank. I have invested the fixed deposit 1.5 years ago and there is a lockin period of 5 years. They have invested the amount of Rs. 7.5 % and the employees are helpful in the branch.
I have a Fixed deposit in Axis bank. I have invested the money of Rs. 10000 for two FDs. There is a lockin duration of 1 year. They are giving a interest rate of 7%. Through net banking, i have activated this Fixed deposit. There is no tax benefits available. Axis bank service has been good. Overall, I'm happy about their services.
Since last 15 years, i have a account with Oriental bank of commerce thats the reason i have invested the money in fixed deposit with the same bank. I have invested the amount of Rs. 11 lakhs. They are giving the interest rate of 6.5%. There is no locking period but i have chosen the duration of 1.5 years. There is no additional charges deducted for this fixed deposit.
Interest rate is very low in Indian post office Fixed deposit scheme because they are providing only 8.5%. I have chosen this office because of the child benefits. I have invested the money of Rs. 1.5 years. Its 3 years lock in period. Overall, I'm satisfied with the service provided by post office employees.
I have invested the money in SBI for a fixed deposit and based on my wife recommendation i have chosen it. They are providing the interest rate of 7.25%. They have option to select the lock in period in that i have chosen 5 years. We had visited their branch and the response was good.
Its easy accessible and to redeem so that i have invested the money in Fixed Deposit with HDFC BANK. I have invested the money of Rs. 2.5 lakhs and they have provided me a interest rate of 7.5%. There is no locking period. I didn't got any additional charges till now.
I have paid the money of Rs. 4.5 lakhs as a fixed deposit in the Indian post office. For the safety purpose, i have chosen the post office account. They are offering me a interest rate of 7.9%. There is a lockin period of 5 years. If i withdraw the money in 1 year, they will reduce the interest rate of 2% and after 3 years, its 1%.
Interest rates are less in Central Bank of India so I had taken a fixed deposit. I have invested the money of Rs. 1 lakh in my wife's name. Branch is near from my place so I have chosen this bank. Yearly once, I get the money of Rs. 6,765 for the interest. There is a locking period of 1 year.
I am doing Fixed Deposit with ICICI BANK and its been around 5years. They haven't been paying good interest and its more or less same like other banks as I used to hold my salary account with ICICI, I have decided to be with one bank. There is no locking period and its flexible. They do give good support and the app is user friendly. Even deposit account can be opened through i-mobile or net banking itself.
I had a Fixed Deposit in State Bank of India, I have completed the tenure before 3months ago. I have no issues with the customer service. They are given me 7% interest rate for 2years. There is no profit and processing fee. I got an online access, where I can check the interest rate anytime on the YONO app or else SBI online.
I have invested some money through FD. My salary account is in SBI so i have a zero ATM charges and the limit is not actually set by SBI. They do have short term FDs which is pretty good. I have invested the money of Rs. 60000 and the interest rate is 10.01% for the tenure period of 16 months. There is no lockin period. There is no hassle to getting the money back.
I have invested the money in Dena bank through Fixed deposit and the growth is not that much good. They are not taking any hidden charges. Only because of the Government undertaken bank, i have selected them. They are providing a interest rate of 6% per annum. I have invested the money of Rs. 2 lakhs. There is a lockin period of 1 year.
I have opt for fixed deposit for the tax saving purpose because I have chosen five years tenure with AXIS Bank, still its going on. Only once I Invested my money it has the locking period of five years. I have option to check my transactions through mobile app. But I have concern about the interest rate is very lesser for this FD.
I had fixed deposit with SBI then I withdrawn the amount, I done Rs. 3 lakhs of investment on my daughter name then I taken the liquidity to purchase the land, at the time I struggled a lot to take that money because the process was difficult to withdrawn the money after seven months of tenure.
I had a Fixed Deposit with Union Bank of India and its closed 18 to 19 months due to personal reasons. I am doing investment but my experience is not good with FD account. In my home town, there is no other banks so just decided to go with this bank. The returns are good.
I have one FD with HDFC, I deposited Rs. 1 lakh, I was opt for 45 days of tenure. Finally I got 6.25% of interest for 45 days. It won't cover the tax, if we need tax benefits we should go for five years term. I can track the details through netbanking, on the maturity date the amount credits automatically in the account. Even the notification can customized.
HSBC staff wrongly pre closed my fixed deposit .. and calculated the interest rates wrongly and when asked them for clarification never got back .. even after following up with them repeatedly for more than 3 months.. would highly recommend not using their services.
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A V kumar
Reviewed on Aug 24, 2019