How to Close an FD Account

Step 1: Visit the bank branch and get a form for premature withdrawal.

Step 2: Fill the form with necessary details such as name, bank account details, and FD number among others.

Step 3: Submit the document with the bank and they will process your request.

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

Step 1: Visit SBI's website and click on the "Fixed Deposit" tab.

Step 2: Click on the "ETDR/STDR (FD) tab" under the Fixed Deposit tab.

Step 3: Click on the Close A/C Prematurely' tab.

Step 4: Your FDs will be listed in this section.

Step 5: Select the FD you want to close and click on the "Proceed" button.

Step 6: Verify your FD detail such as amount, date of maturity and so on.

Step 7: Mention the reason for closing the FD in the 'Remarks' section and click on the 'confirm' tab.

Step 8: You will now receive a 'high security password' on your registered mobile number.

Step 9: Enter the 'high security password' and click on the 'confirm' tab.

Step 10: You will receive a message confirming that the FD has been closed.

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.

Visit this link to know more about - How to Close SBI Fixed Deposit Online/Offline

Steps to Close HDFC FD Online Before Maturity

Step 1: Visit the HDFC website and login to your NetBanking account with your Customer ID and IPIN (NetBanking Password).

Step 2: Click on the "Fixed Deposit" tab from the "Menu bar" situated on the left side of the page.

Step 3: Select the 'Liquidate Fixed Deposit " option under the Fixed Deposit tab.

Step 4: You will see a list of your fixed deposits in this section.

Step 5: Select the FD account number you want to closet from the FD lists.

Step 6: Click on "Continue" and "Confirm" the details entered.

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.

Visit this link to know more about - How to Close HDFC Fixed Deposit Online/Offline

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.

Formulas for Calculating Interest Rates for Premature Closure:

1. There are many banks that do not levy a penalty for premature withdrawal. Invest in a bank that has this facility.
2. 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.