How To Break Fixed Deposit In SBI Online
Fixed Deposits are considered one of the safest financial instruments to invest in, especially by conservative investors. Investors with less risk appetite prefer these investment products. Top lenders like the State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank, offer the hassle-free way of opening an FD online. People can seamlessly and quickly invest their money into their FDs in just a few clicks.
Table of Content
- About SBI Fixed Deposits
- How To Break FD In SBI Online
- How to Close FD in SBI Offline
- SBI FD Closure on Maturity
The best lenders that offer FDs also offer the option of closing an FD online. The whole process is intuitive, simple, and seamless. In this article, we’ll be discussing how to close FD in SBI online before maturity. Before we get into how to break FD in SBI online, let us know more about the SBI Fixed Deposit.
About SBI Fixed Deposits Account
State Bank of India is one of the top lenders in the country that offers attractive interest rates on fixed deposits for tenures that range from 7 days to 10 years. They offer many attractive features and benefits that make them one of the premium choices for fixed deposits. SBI fixed deposits offer an additional interest rate of up to 0.8% to senior citizens. The interest rates for the general public range from 2.90% p.a. to 5.40% p.a.
SBI has feature-rich fixed deposits that offer various customer-friendly benefits:
- Interest payments are done on a calendar quarter/quarterly/monthly basis.
- The minimum deposit amount is Rs.1,000 only.
- No upper limit on the deposit amount.
- Deposit term ranging from 7 days to 10 years.
- A nomination facility is available.
- Loans of up to 90% of the principal amount can be availed against the FD.
- Overdraft of up to 90% of the principal amount can be availed against the FD.
- Term Deposit with Regular Interest Payout can be converted to Cumulative Interest Payout and vice versa.
How To Break FD In SBI Online
Closing your FD with SBI is a simple process. You can get your FD amount credited to your account just within a few clicks.
Read the following steps to know how to break FD in SBI online:
- Step 1: Visit the SBI’s website and go to the Fixed Deposit tab.
- Step 2: Then, go to the ETDR/STDR (FD) tab under the Fixed Deposit tab.
- Step 3: Click on the ‘Close A/C Prematurely’ tab and you will see a list.
- Step 4: Your SBI FDs will be listed in this section.
- Step 5: Select the Fixed Deposit you want to close and click on the proceed button.
- Step 6: Verify your FD details such as amount, date of maturity, and so on to be sure that you’re closing the right FD.
- Step 7: You can 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 from SBI.
- Step 9: Enter the ‘high-security password’ and click on the ‘confirm’ tab.
- Step 10: You will receive a confirmation message that the FD has been closed.
- Step 11: The FD amount will be credited to your savings account.
This is how to break FD in SBI online. However, you may want to close your FD by visiting the SBI branch offline.
How to Close FD in SBI Offline
Here are the steps you need to follow to close FD in SBI Offline:
- Visit the SBI bank branch and get a form for premature withdrawal of fixed deposits.
- Fill the withdrawal form with necessary details such as name, bank account details, and FD number.
- Submit the document to the SBI bank branch and they will process your withdrawal request.
- Once the request is processed and FD is closed, the funds will be credited to your savings account.
SBI FD Closure on Maturity
If the FD has matured and the depositor has not taken any action, the bank deals with the FD in the following ways:
- Auto-Renewal: The FD will be automatically renewed by the bank for one year or the original term of the FD on the due date.
- Auto liquidation: The FD will be liquidated by the bank on the due date and the proceeds will be transferred to the linked savings account.
- Interest Reinvestment: 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.
Thus, you must read the terms and conditions on the deposit certificate carefully to learn about the closure of fixed deposits on maturity.
Does SBI charge any penalty charges for premature closure of FD?
Yes. Banks usually charge a certain penalty amount for withdrawing the FD account before the maturity due date. The penalty amount differs from bank to bank and the type of deposit helps.
Can you close an FD online if it was opened offline?
Generally, if the FD was not opened online, it may not reflect in your net banking account. Although, with some banks the FD can be closed online even if it was not opened online. However, you can request your customer care to help you with the online closure.
What are the penalty charges for premature closure of FD?
Penalty charged will be a certain percentage of the interest amount earned. This percentage charge will vary from one bank to another.
Can I withdraw the account prematurely if there is a specified lock-in period?
No, this will not be possible.
Can I break my tax-saver FDs, which comes with a lock-in period of 5 years?
No, tax-saver FDs cannot be withdrawn prematurely.