• How to Close a FD Account

    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)

    1. Step 1: Visit the bank branch and get a form for premature withdrawal.
    2. Step 2: Fill the form with necessary details such as name, bank account details, and FD number among others.
    3. Step 3: Submit the document with the bank and they will process your request.
    4. Step 4: Once the FD is closed, the funds will be credited to your savings account.

    Steps to close an SBI FD online before maturity

    1. Step 1: Visit SBI's website and click on the Fixed Deposit tab.
    2. Step 2: Click on the ETDR/STDR (FD) tab under the Fixed Deposit tab.
    3. Step 3: Click on the Close A/C Prematurely' tab.
    4. Step 4: Your FDs will be listed in this section.
    5. Step 5: Select the FD you want to close and click on the proceed button.
    6. Step 6: Verify your FD detail such as amount, date of maturity and so on.
    7. Step 7: Mention the reason for closing the FD in the 'Remarks' section and click on the 'confirm' tab.
    8. Step 8: You will now receive a 'high security password' on your registered mobile number.
    9. Step 9: Enter the 'high security password' and click on the 'confirm' tab.
    10. Step 10: You will receive a message confirming that the FD has been closed.
    11. Step 11: 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

    1. Step 1: Visit the HDFC website and login to your NetBanking account with your Customer ID and IPIN (NetBanking Password).
    2. Step 2: Click on the Fixed Deposit tab from the Menu bar situated on the left side of the page.
    3. Step 3: Select the 'Liquidate Fixed Deposit " option under the Fixed Deposit tab.
    4. Step 4: You will see a list of your fixed deposits in this section.
    5. Step 5: Select the FD account number you want to closet from the FD lists.
    6. Step 6: Click on "Continue" and "Confirm" the details entered.
    7. Step 7: 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

    1. Step 1: Visit the ICICI website and login to your NetBanking account with your Customer ID and IPIN (NetBanking Password).
    2. Step 2: Click on the 'My Accounts' tab followed by the 'Deposits' tab.
    3. Step 3: Click on the 'Service Request' option under the 'Deposits' tab.
    4. Step 4: You will see the 'Closure/Renewal of Existing Fixed/Recurring Deposit' option. Click on it.
    5. Step 5: Click on the 'Request for' tab and select 'Premature Withdrawal of FD' from the dropdown menu. Click on the 'Continue' tab.
    6. Step 6: Confirm the FD details displayed in the section and click on the 'Submit' tab.
    7. Step 7: In order to authorise the transaction you will need to enter digits from your debit card grid.
    8. Step 8: You will receive a one-time password (OTP) on your registered mobile number.
    9. Step 9: Enter the OTP and click on the 'Submit' tab.
    10. Step 10: 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.

    Auto Renewal

    The bank may renew the FD automatically for one year or for the original term of the FD on the due date.

    Auto Liquidation

    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 Fixed Deposit 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.

    FAQs

    1. 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

    2. 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.

    3. 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.

    4. 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.

    5. Can I withdraw the account prematurely if there is a specified lock-in period ?

      No, this will not be possible.

    6. 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.

    7. Should NRIs who return back to India close their NRO, NRE FD?

      Yes. NRIs who return back and lose their NRI status can ideally close their FDs and make other investments.

    8. 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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