Effective ways to close your SBI Fixed Deposit Account. Step by step to Close FD in SBI Online / Offline Before Maturity. How to Break Fixed Deposit (FD) in SBI Online
Fixed deposit accounts encourage saving discipline since one can only deposit and not withdraw. This creates a habit, thus achieving different goals in a short time. Banking and financial institutions advise members seeking to save for future projects to open a fixed deposit account. The amount is locked for a particular timeframe, from days to years. There are several rules governing the account and multiple benefits.
SBI Bank India provides users with a fixed deposit account to help save for long or short-term projects. The account is applicable online or offline, making it the best choice for any customer. SBI FD account has amazing interest rates by the end of the maturity period. However, if, by chance, the customer wishes to withdraw the funds before maturity. They won’t earn the interest as indicated on the account terms and conditions. There are various ways to close an SBI fixed deposit account.
State Bank of India Fixed Deposit
SBI Fixed Deposit Upon Maturity
Once the funds mature, the account user should withdraw or decide to continue with the new tenure. However, the bank takes the following actions if the user hasn’t requested the funds:
- Auto liquidation
The SBI bank will automatically liquidate the FD account on the maturity date and move the money to the member’s saving account.
The bank can also auto-renew the tenure using the original timeline.
- Reinvestment of interest
The account user can choose to invest the interest earned from the money. They can opt for the same tenure or a new one based on preference. The principal amount will be sent to the saving account.
Features and Benefits of SBI Fixed Deposit
- The interest rates are paid quarterly or monthly.
- The account can deposit a minimum amount of Rs. 1000.
- There is no limit on the maximum deposit.
- SBI provides a fixed term of 7 days to 10 years.
- One can enter their preferred nominee.
- The account helps one avail of a 90% loan on the principal amount.
An overdraft of 90% on the principal amount is available for the FD account
How to Close SBI Fixed Deposits Online Before Maturity
Steps to close SBI FD before maturity online. How to Break Fixed Deposit (FD) in SBI Online
Account users can opt to close the account before the due date. However, there are implications for the amount.
- Go to the SBI internet banking page link.
- Enter your login credentials to access the account.
- Proceed to the “fixed deposit” option.
- The page will show two options, select either “term deposit (e-TDR) or Special Term Deposit (e-STDR).
- Next, select the “proceed” >“close Account prematurely” option.
- The page will display all your fixed deposit accounts on the screen.
- Select the account you wish to close and press the submit button.
- Choose a reason for closing the account and click confirm button.
- The system will send a password to your registered mobile number.
- Use the password and click the confirm button to proceed.
- A message “your e-TD or e-STD account has been successfully closed” will show on your screen.
- The funds will be sent to the saving account.
How to Close SBI FD Account Prematurely Offline
How to Close SBI Fixed Deposit Account (FD account) prematurely (offline)
- Go to the SBI bank and request FD account closure.
- The bank officer will provide a premature withdrawal application form.
- Enter the required information like FD account number, name, bank account, and other bank-related details.
- Review the details and submit the form.
- The officer will verify the information and credit the amount to your saving account.
Banks advise FD account users not to withdraw funds prematurely to avoid penalty interest rates. One can take a loan against the FD deposit amount or overdraft to beat the financial need. This will eliminate the need to withdraw or close the account before time.
- Are there any charges for withdrawing/closing SBI FD before the due date?
The bank charges a certain amount for withdrawing funds before the due date. Account users can check with the bank about the penalty.
- Can I close my account though I opened it at the bank branch?
The account might not show on your internet banking page. However, you can check with the bank's customer support for help.
- How long can I save on the SBI FD account?
The SBI bank provides a duration of 7 days to 10 years; the user can select any timeframe based on preference.
- SBI Full Form
State Bank of India Fixed Deposit (SBI FD)