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 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.
Was this review helpful?
A V kumar
Reviewed on Aug 24, 2019
I do have a Fixed deposit account with SBI and it was carried out by Mom and even I have account for my daughter. Its still running and they have Google application separately to access online. The returns are good. I am doing monthly investment and it was opened quite a long may be 4 years.
I just opened a Fixed Deposit with ICICI BANK and have not done any survey on this. I am account holder with them so it was easy to do FD account even they are providing 7% interest rate. The process is very user friendly and never faced any hassle. I could access this account via online.
In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
I have FD with SBI, I have opt for one year term there is no such limitation for depositing the money. The interest rate is good for the FD, the online banking is convenient to take liquidity. They resolve the queries on time. Its most safe and secured.
I have selected state bnak of indis fixed deposit amount 1 lakhs , Tenure 5 years and Rate of interest 8 percentage after renewal fixed deposit 6 percentage is very less .while document directly bank . Customer service is not good and responsive.
I activated FD account with Kotak, I have been maintaining this account since when I opened saving account, I converted Rs. 5000 for one year. They are providing interest around 7.6% per annum, the online netbanking and mobile app is very convenient for deposit to FD.
I have invested my FD with ICICI BANK and also have a 3in1 account with them. The interest rate is pretty good. Recently started before 6months, I can do premature withdrawal and also have selected a locking period of 3 years. The customer service is good and overall am satisfied with this bank.
My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
Chosen my fixed deposit from State bank of India. I have invested the money of Rs. 57000 and SBI is a most popular bank all over the India and offering all the facilities compared to bank. Since i have a salary account with them, its easy to transfer the money. They are providing the interest rate of 6.5%.
Union of India fixed deposit is same as other investment. Being an existing customer I have opt for one year of fd, the online banking feature is good to open and closing the account, they was no charges for the liquidity of fund before the maturity.
Chosen my fixed deposit from state bank of India because the given rate of interest is high. They are not deducting any service charges. I have invested the money of Rs. 1 lakhs and there is no lockin period and i have chosen the plan for 1 year and they are giving a interest rate of 6.75%.