Bank Fixed Deposits is one the most popular and safest investment products in India. Most of the banks provide this service of opening a fixed deposit online. Also, one can similarly close FD online or offline by visiting the branch. In this article, we will discuss in detail how to close FD in SBI.
Things to Know Before Closing SBI FD
State Bank of India FD rates are offered at attractive interest rates as well as flexible repayment tenures. The tenures range from 7 days to 10 years. Hence, the depositor has an option to close SBI FD before or after the maturity. To close FD in SBI after maturity, one must submit the deposit certificate at the SBI bank. Further, a signed form is required indicating that FD to be closed on the maturity date. Thus, the fixed deposit amount and the interest earned will be transferred to the depositor’s savings account on maturity. Moreover, one can renew or close their FD in SBI on the maturity date online.
Similarly, one can close FD in SBI bank either online or offline. To close FD in SBI offline, one can visit the nearest branch of SBI. They need to submit the fixed deposit certificate to initiate the process. If it is a joint account, then it has to be jointly signed by the depositors. Further, the depositor has to submit an FD account closing form with all required details like FD account number, savings account details, etc. Additionally, the depositor has to log in to their internet banking to close FD in SBI online.
If the depositor has opted for an auto liquidation option, then the entire FD amount will be credited to the linked bank account on maturity.
Steps to Close SBI Fixed Deposit Online
Time needed: 8 minutes.
The following is the step by step process to close FD in SBI online before maturity –
- Visit SBI portal
Firstly, visit the SBI net banking portal (https://retail.onlinesbi.com/retail/login.htm).
- Login to Account
Login to the account with the credentials, i.e. username and password.
- Go to the ‘fixed deposit option’.
After login tap on left corner menu in mobile or find in header navigation menu in desktop
- Click on the term deposit Option
Then click on either the term deposit (e-TDR) or Special Term Deposit (e-STDR) option and click on ‘Proceed’.
- Click on the option ‘Close account prematurely’.
After click on “close account prematurely”. The page will display the list of FD accounts with the bank.
- Select the FD account
The depositor has to select the FD account they wish to close and click on ‘Submit.
- Specify the reason to close the FD account in SBI
The depositor has to specify the reason for the closure of the FD account in SBI and then click on ‘Confirm’.
- Verify Security Codes and Close SBI FD Account
A security password is sent to the registered mobile number. Enter the password and again click on ‘Confirm’.
Finally, a message will be displayed on the screen mentioning ‘Your e-TD/e-STD account has been successfully closed’. Upon closure of the account, the proceeds will be credited to the linked savings bank account.
FD Closure on Maturity
If the maturity period of the FD is over and the depositor has not taken any action, then the bank has two ways to deal with the fixed deposit –
- Auto-Renewal: The bank will renew the FD automatically for one year or the original term of the FD on the due date.
- Auto liquidation: The bank will liquidate the FD on the due date and transfer the proceeds to the linked savings account.
- Interest Reinvestment: If the depositor opts for this option, then the interest earned on the FD account will get re-invested for the selected tenure on the due date. Thus, the remaining principal amount will be credited to the savings account.
Therefore, one should read the terms and conditions on the deposit certificate to learn about the treatment of fixed deposit on maturity.
Steps to close FD in SBI Offline?
The following is the step by step process to close FD in SBI offline –
- Firstly, one has to visit the nearest SBI branch and get the premature withdrawal form.
- Fill the form with necessary details such as name, bank account details, FD number, etc.
- Submit the document with the SBI bank to process the closure request.
- Once the FD is closed, the amount will be credited to the linked savings account.
You may also like to read about the How to Close Fixed Deposit Account?
FAQs on Closing FD Account
How can I change the maturity instructions?
If one has opened an FD account in SBI, they can change the maturity instructions by logging into their account and selecting the ‘Fixed Deposit’option. They have to select the type of deposit account and then click on ‘Modify Maturity Instruction’. Next, the depositor has to select the FD for which they wish to change the maturity instruction. (Auto-renew Principal and Interest, Auto-renew Principal and repay Interest or Repay Principal and Interest)
The depositor has to select the appropriate option and click on ‘Confirm’. The maturity instruction will be modified for the FD account chosen.
Do I need to have a savings account to open an FD account in SBI?
Yes, one needs to have a savings account to open an FD account in SBI. It is an easy process to log in to your net banking and apply for opening an FD account online.
How much will I get after the maturity of FD?
The depositor will get a total of the principal amount and the interest at the maturity of the FD account. Hence, one can use FD calculator to estimate their maturity amount by entering the investment amount, interest rate, and investment period.