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  • Fixed Deposit BYTES FROM OUR KITCHEN

    How to Close a FD Account

    Closing a Fixed Deposit (FD) is a simple process and can be done online at the convenience of your home. There might be numerous reasons for closing an FD. However, it most cases, it is usually a financial emergency. There are two methods of closing an FD:

    • Close FD online through internet banking
    • Close FD offline by visiting bank branch

    Step by Step process to close an FD online (Prematurely)

    1. Log on to the your bank’s internet banking portal
    2. Go to the home page and select the fixed deposit
    3. Go to account details, service request section and click on the ‘Close a/c prematurely’ option
    4. Choose the appropriate FD account and click on ‘Proceed’

    Procedure to close an FD offline at bank branch (Prematurely)

    Before you visit the bank branch to close the FD, write a letter to the branch manager mentioning that you want to withdraw the FD prematurely. In the letter, mention the deposit number and other details. Below is a sample of such a letter.

    Date: xx/xx/xxxx

    To,

    The Branch Manager

    XYZ Bank

    Subject: Request for Closure of FD Account

    Dear Sir/Madam,

    I am writing this letter with regard to my FD account, which I would like to close due to a personal financial emergency. I appeal to you to please ensure that the FD is closed as soon as possible. Also, please credit the proceeds from the term deposit account to my savings account.

    Please find below, the details of my term deposit:

    Deposit account number: XXX

    Opening date: XXX

    Type of deposit: XXX

    Name of deposit holder: XXX

    Request you to kindly process the request at the earliest possible date.

    Thanking You,

    Yours Sincerely,

    XYZ

    How to close an FD at maturity

    It is important to close an FD on the maturity date because once an FD matures, the term deposit may get automatically renewed, if the depositor has given auto renewal instructions. However, even if there is no maturity instruction, in most cases the FD is put for auto renewal. In some cases, the depositor would have given the bank his/her savings account details for the crediting of term deposit funds after maturity.

    This will have implications on the maturity amount and interest calculation and hence it is wise to claim for deposit at maturity. If there is no claim on an FD for more than 2 or 3 consecutive maturity dates, which may be likely if the customer forgets to renew the FD account, the bank will try to contact the customer or nominee to hand over the money.

    Stepwise process to claim matured FD

    In case you have forgotten to make a claim on your FD and it has matured several years ago, follow this process to make a claim:

    1. Log on to the bank website
    2. Fill in the claim form for unclaimed deposits
    3. Enter all details and deposit number
    4. Submit the claim form to the bank along with supporting documents such as ID proof, address proof, FD receipt

    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?

      Yes. If your bank does not charge you, then this is likely. Also, note 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. Can I avail a loan against a tax-saver FD?

      Ideally, loan/overdraft facility is not granted for tax-saver FDs.

    8. 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.

    9. What is the percentage that will be deducted if the FD is broken at the 7th month?

      Ideally, this percentage will range around 0.4% to 1.2 %. The percentage depends on where you hold the FD, if it is a private or a public sector bank, along with other factors.

    10. In case of a joint account, is there a need to obtain the signature of all account holders?

      Yes. This is a must.

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    How to Close a FD Account Reviews

    • Axis Bank Fixed Deposit
      "Very Assured Fixed deposit"
      0.5 5.0/5 "Blown Away!"
      I opened a Fixed deposit in Axis bank for one year of term period . They sent a physical copy for my fixed deposit which gives a good assurance about that bank . So that my nominee can be aware of my FD and can approach them very easily if something happens to me . I can check the status of my FD through on line itself .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 23, 2019
    • HDFC Bank Fixed Deposit
      "Excellent services"
      0.5 4.5/5 "Excellent!"
      The best bank for a fixed deposit is HDFC Bank. The customer support is good and they are responsive as well. They offer an interest like other bank on my savings. The best is there is no lock in period so I close this account when ever I want too and I can do it with just a click away online. Where as other banks they would ask me to go to the home branch.
      Was this review helpful? 2
      , new delhi
      Reviewed on Apr 16, 2019
    • review Fixed Deposit
      "Good interest on savings"
      0.5 5.0/5 "Blown Away!"
      I also have a fixed deposit with Saraswat Cooperative Bank. The customer support is good and they are responsive. I been a customer for 20 years. The interest they provide on my savings is more than satisfactory and there are no charges taken for this account features.
      Was this review helpful? 1
      , mumbai
      Reviewed on Apr 15, 2019
    • SBI Fixed Deposit
      "Less interest rate"
      0.5 5.0/5 "Blown Away!"
      Two months before I deposited my money nearly 1,50,000 in SBI . I am really happy with their customer service and response . But the interest rate is around 6.85 % which is lesser comparing to other bank . Since It is Government bank, I need not to worry in future if anything uncertain happens .
      Was this review helpful? 1
      , chennai
      Reviewed on Apr 15, 2019
    • Central Bank of India Fixed Deposit
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have done fixed deposit on CENTRAL BANK OF INDIA an year ago, i did not face any issue in creating account. They have given me limited tenure period, i use to pay my payment through my credit card of same bank, now i have withdrawn my deposit. I got good interest rate so far my experience was good.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Apr 15, 2019
    • Citibank Fixed Deposit
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I also have a fixed deposit with Citibank. I could get the clear details online. Though I would not be able to open this account through the mobile application. I can do it through the desktop. It has been a good experience till date and beneficial too.
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 15, 2019
    • SBI Fixed Deposit
      "Good in all"
      0.5 5.0/5 "Blown Away!"
      I also have a fixed deposit account with State Bank of India. The customer services are good. The process can be done online. The lock in period depends on the choice of the customer. The minimum tenure is six months. The interest rate provided is also equally good.
      Was this review helpful? 4
      , new delhi
      Reviewed on Apr 13, 2019
    • Bank of Baroda Fixed Deposit
      "Overall no hassles"
      0.5 5.0/5 "Blown Away!"
      It is a very simple process to open a fixed deposit account with Bank of Baroda. The lock in period is for five years. They provide a very good interest on my savings. The process at the bank is also good. There are no hassles in the overall experience.
      Was this review helpful? 0
      , faridabad
      Reviewed on Apr 12, 2019
    • SBI Fixed Deposit
      "Looking for More Investment"
      0.5 5.0/5 "Blown Away!"
      Five years before , I opened a Fixed deposit in SBI , It automatically renewed on every year. I just monitors in online . I am looking for more investment in the future. At one stage I open this fixed deposit for my children's education or marriage .
      Was this review helpful? 1
      , secunderabad
      Reviewed on Apr 10, 2019
    • Federal Bank Fixed Deposit
      "Good customer support"
      0.5 5.0/5 "Blown Away!"
      In Federal bank , for Recurring deposit they provide very good interest rate of almost 7.5% .Even it is applicable for shorter period and longer term also . Very good customer support . After comparing with other banks , I decided to start my FD in Federal bank .
      Was this review helpful? 1
      , kochi
      Reviewed on Apr 09, 2019
    • review Fixed Deposit
      "Overall good"
      0.5 5.0/5 "Blown Away!"
      I hold a fixed deposit account with City Union Bank. The rate of interest is of 7.25% on my savings. The customer support is good and they are responsive as well. It was easy to open this account and I can do it online. There are no hassles in the overall service.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 05, 2019
    • ICICI Bank Fixed Deposit
      "Good Accesibility"
      0.5 5.0/5 "Blown Away!"
      My fixed deposit with ICICI, I have opened the account through online just from the I mobile. I invested around Rs. 1 lakh its for long duration. The interest is good, I can withdraw the money through online banking without any charges. I am very fine with them.
      Was this review helpful? 4
      , indore
      Reviewed on Apr 03, 2019
    • IndusInd Bank Fixed Deposit
      "Good interst for FD savings"
      0.5 4.0/5 "Great!"
      I opened fixed deposit account through online, the process was simple without any documentation. Currently the bank is providing the interest around 8% for the FD account. I done it before year it has tenure this year one year. I think this august my Fd amount gets matured.
      Was this review helpful? 4
      , bangalore
      Reviewed on Apr 03, 2019
    • Standard Chartered Bank Fixed Deposit
      "Good service"
      0.5 4.5/5 "Excellent!"
      Hold a fixed deposit Account with STANDARD CHRATED BANK . The best thing is their Customer Service .The response of banking service and banking staff is good here . The online banking is good and the services at the branch is also satisfactory.So far it has been good experience with STANDARD bank .
      Was this review helpful? 1
      , new delhi
      Reviewed on Apr 03, 2019
    • HDFC Bank Fixed Deposit
      "Its Good"
      0.5 4.0/5 "Great!"
      I went to the bank for the FD process, the service was good they helped to open the account on the same day. I took the fixed deposit for the period of three years and I deposited Rs. 1 lakh, I would get the amount of Rs. 1.35 lakh. I do have HDFC online access .
      Was this review helpful? 3
      , hyderabad
      Reviewed on Apr 03, 2019
    • Post Office Fixed Deposit
      "Good Experience"
      0.5 4.0/5 "Great!"
      My fixed deposit got matured with Post office, the interest was nominal. The staff are good they gave me good service. There was no online option hence I need to visit for depositing the cash. I invested for five years for fixed deposit, my experience was good.
      Was this review helpful? 1
      , chennai
      Reviewed on Apr 03, 2019
    • HDFC Bank Fixed Deposit
      "Good overall"
      0.5 5.0/5 "Blown Away!"
      I have a fixed deposit account with HDFC Bank and the banking process is good. I could open this account online and the account has been beneficial too. I earn a good interest. I can also close this account without having to go in person to the bank. It can be done online too.
      Was this review helpful? 3
      , bangalore
      Reviewed on Mar 29, 2019
    • IndusInd Bank Fixed Deposit
      "Good Investment with Indusind bank"
      0.5 5.0/5 "Blown Away!"
      One time investment I have done in Indusind bank as a fixed deposit, it has locking period around one year. They are providing the interest around 8% for one year. Online option is easy to activate the service and closing, there is no charges for the FD maintenance.
      Was this review helpful? 2
      , indore
      Reviewed on Mar 26, 2019
    • Axis Bank Fixed Deposit
      "Convenient"
      0.5 4.5/5 "Excellent!"
      I have a Fixed Deposit with Axis Bank because they have offered more interest than ICICI BANK and its been more than 1.5 years. Their customer service is always good. The interest rate is around 7.6% which am not sure. I can manage the account online. I opted for 18 months.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Mar 26, 2019
    • Bank of Baroda Fixed Deposit
      "Need improvement on customer support"
      0.5 4.0/5 "Great!"
      I have done one time investment fixed investment in Bank of Baroda, it has five year of locking period. The interest is nominal for the FD, I believe BOB give the interest around 8% , however there was no proper information regarding the interest. My father have taken this FD on my name, every year I deposit the amount.
      Was this review helpful? 1
      , noida
      Reviewed on Mar 25, 2019
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