Bank FD Close: Bank fixed deposits (FDs) have long been a preferred option for investors, especially those who are cautious and want to protect their assets. Bank FDs are known as fixed deposits in the banking industry as they have a fixed tenure which can range from seven days to ten years. FD interest rate varies depending on the tenure and amount. However, in cases where premature withdrawal takes place, the bank may levy a penalty for premature withdrawal.
What happens to FD on maturity?
- In general, banks handle matured fixed deposits in one of the following two ways:
- The FD is automatically renewed for an initial period or one year, depending on the tenure chosen by the holder.
- The principal and interest are automatically eliminated and transferred to the holder’s account.
- Let us see how to close an FD on maturity and prematurely, whether it is opened online or offline by visiting a bank branch.
FD closure on maturity
If you have opened it online through internet banking while opening the account for the first time, then it will be very easy for you to close the FD account on maturity. All you have to do is go to the Fixed Deposit section of your net banking account. You can check the status of your investment and choose to close or liquidate it.
Premature closure of FD
Banks usually offer their customers the option to close their fixed deposits much before the stipulated maturity date. As a result of short tenure, you may not get full interest on your investment and may also face penalty. In other words, interest will be paid only during the time your deposit was kept with the bank. After closing the FD, the money will normally be sent to your account.
Whatever the cause, if you must close your FD before the date of maturity, be sure to consider the penalty fee (if any) and the interest loss you will suffer.
How to close SBI fixed deposit online
Step 1: Go to the official website of SBI (www.sbi.co.in).
Step 2: Click on the Fixed Deposit tab on the screen.
Step 3: Look for FD tab, called ETDR/STDR (FD). Click on it.
Step 4: There is an option “Close A/C Prematurely”. Click on it. A list will appear with your FD
Step 5: You can close a specific SBI FD by selecting it from this list. Proceed by clicking the button.
Check details and verify your FD account details like the date of maturity, amount deposited, and the like.
Step 6: You can state the reason for closure of the account and then hit on Confirm.
Step 7: Enter OTP (One-Time Password) on your registered mobile number and confirm
Step 8: After you click confirm, SBI will send you an email confirming that your SBI FD account has been effectively cancelled.
When you close your FD account online, the funds in your FD account will be transferred to your designated bank account.
How to close HDFC Bank FD online
Step 1: Login to NetBanking using your NetBanking ID and Password
Step 2: Select Liquidate Fixed Deposit option under the Fixed Deposit menu on the left
Step 3: Select the Fixed Deposit account number from the drop-down lists
Step 4: Click on Continue and Confirm the details entered
You can also go to a branch near you and present the deposit advise you received when you opened your Fixed Deposit Account. After all account holders have signed the deposit advice, it must be submitted.
