How to Close KVB Fixed Deposit

A term deposit/ fixed deposit is a scheme where you can invest huge amounts for a pre-fixed tenure, and you can earn interest at the rates applicable on the day you open the fixed deposit.

Karur Vysya Bank offers Fixed Deposit offers fixed deposits at many tenures at a very competitive interest rates. There may be a lot of cases where you can close a fixed deposit- either prematurely or close it once the term is over, instead of renewing it.

Steps to Close Karur Vysya Bank Fixed Deposit Account

• Step 1: Fill in the account closure form/fixed deposit liquidation form

  • The first step to closing your Karur Vysya Bank fixed deposit account, you have to fill up the account closure form.
  • You can visit the bank branch, get the form, and submit it with the required documents.
  • You should submit this to the branch manager or the officer-in-charge.
  • If there are any joint holders, all of them have to sign the account closure form.

• Step 2: Attach your KYC documents

  • All holders of the fixed account will have to attach copies of your KYC documents.
  • These will include a copy of a proof of identity, and proof of address.
  • You need to self attest the documents and then submit them.

• Step 3: Submit your Fixed Deposit Certificate or the Fixed Deposit Receipt

  • When you apply for a fixed deposit, the bank will issue a deposit certificate or receipt.
  • This will show details like your fixed deposit amount, tenure, and rate of interest.
  • You have to show the certificate or receipt when you close the fixed deposit.
  • This has to be signed by all the account holders.
  • The documents will be verified and you will be asked to withdraw the balance amount.

Things to Keep in Mind While Closing a Karur Vysya Bank Fixed Deposit Account

• When you close your fixed deposit account, you have to visit the bank branch where you had opened the account.
• On a premature closure, a penalty ranging between 0.50% and 1% lower interest will be levied.
• A tax-saver fixed deposit cannot be withdrawn before its maturity.

FAQs on How to Close Karur Vysya Bank Fixed Deposit

1. What is the minimum tenure for which I can keep a fixed deposit with the bank?

   You can have deposits for 7 days (minimum) to ten years (maximum). You can have deposits in the name of minors that can be placed for more than ten years.

2. Is the interest that is paid on my fixed deposits a variable element?

   Yes, changes can be made in interest rates from time to time, but this will not affect the interest that is paid on your existing deposits.

3. Will the interest that is paid on my deposits be different if my deposit value is higher, like more than 15 lakh?

   KVB will give you a higher interest rate for those deposits that are of high value.

4. How will the interest be paid on my deposits?

   You can collect interest every quarter or the discounted value at monthly rests or also get quarterly compounding benefits. The method in which your interest payment is done will be mentioned when you open the fixed deposit.

5. Will I have to pay any penalty if I close a fixed deposit before maturity?

   Yes, you will have to pay penalty if you close a fixed deposit before maturity.