Easy steps to Close HDFC Bank Fixed Deposit Account. How to Close Fixed Deposit HDFC Bank Account. HDFC Bank Fixed Deposit Break / Premature Withdrawal Process. Given below.
HDFC Fixed Deposit Account
Opening a bank account gives the intuition of saving or conducting various financial transactions. An account is a safe platform to keep and transfer funds. It offers accountability and money transparency. However, getting a fixed deposit account goes beyond the normal transaction but a plan for the future or conducting big projects. A Foxed deposit is a secure account that allows an individual to save a particular amount for a certain period.
The money shouldn’t be withdrawn until maturity to provide better returns. Every bank has a set interest rate and benefits based on the customer’s savings and timeframe. After maturity, the bank transfers the interest gained and the amount to account user’s savings account for easy withdrawal. However, one can also reinvest the interest or renewal the tenure based on needs. It’s also possible to close an FD account before maturity (prematurely), though with various consequences.
How to Close HDFC FD
HDFC Bank offers multiple banking services, each with financial benefits. The bank provides FD account services that give customers a chance to save funds in flexible timelines. The Fixed deposit account is designed with a tenure of 7 days to 10 years. HDFC customers seeking to save money for longer can apply for an FD account.
In a financial crisis, the bank allows account holders to get loans against the FD funds. One can also get an overdraft of up to 90% of the saved amount. This eliminates the idea of withdrawing or closing the account prematurely and getting a penalty for the same.
How to Withdraw FD Funds After Maturity
Once the amount matures, the bank will include the set interest benefits. The users can opt to:
- Withdraw the amount to their saving account
- Reinvesting the interest: The account user can invest back the interest gained from money.
- Auto-renewal: The bank auto-renews the period if the account user doesn’t transfer the amount.
The bank transfers the funds using RTGS or NEFT services to the saving account. They can also use cheques addressed to the depositor.
How to Close an HDFC FD Account Prematurely
- Open the HDFC internet banking portal link.
- Next, enter your login credentials to access account options.
- Select the “fixed deposit” tab, followed by the “liquidate fixed deposit” option.
- The page will show a list of FD accounts; choose the account you want to close.
- Review the information and press the “Continue” button.
- Next, confirm the details and click submit button.
- The system will verify the request and credit the amount to the saving account.
- Go to HDFC Bank and request to close your FD account.
- The bank representative will provide a premature withdrawal application form.
- Enter the required details like FD number, name, and bank account data.
- Recheck the form before submitting back to the officers.
- The bank will review the information and transfer the data to your saving account.
A premature closure means low or no interest rate. Suppose the user wishes to withdraw part of the money; the bank will provide a low-interest benefit. However, the remaining funds are entitled to the full interest rate.
Reasons to Close FD Account Before Maturity
- Emergency issues
- Moving abroad
- If the bank has low-interest rates
- Poor customer care service
- Better investment opportunities
To await the maturity date, FD account users are advised to take a loan or overdraft against the saved amount. This will buy the user time for the funds to mature. However, some situations are inevitable, leading to closure.
What is the penalty for premature withdrawal of the FD account?
The HDFC Bank applies a 1% interest rate penalty for premature FD withdrawal.
Can I get a loan or overdraft using FD account funds?
Yes, the bank offers up to 90% of the loan or overdraft against FD savings.