Fixed deposit is a safer form of investment that almost every earning person on this planet is aware of. Although not many people actively indulge in fixed deposits now due to the less returns it brings, we can easily vouch that there are people who to this date rely on fixed deposits to secure their income for the future. If you are one of those people that is considering closing their SBI Fixed deposit but don’t know how to go about the process, this article should give you all the insights that you need.
We are mainly going to focus on the online method for closing the fixed deposit account so you don’t have to worry about visiting the branch that is near you. This is also a much safer option in the wake of the pandemic and the rules of social distancing that are put into place.
What should you know before closing the SBI Fixed Deposit account?
Closing the fixed deposit account can be due to a lot of reasons. Some individuals try to close it because their account has matured and it is time to reap the profits and returns that have been generated from the said fixed deposit.
Some other people try to close their fixed deposit account because they want to withdraw the money prematurely to support their sudden need for funds.
When you are creating a fixed deposit account in SBI, know for a fact that the tenure for such investments is a minimum of 7 to 10 years maximum. If you wish to withdraw your money prematurely, you will have to say goodbye to the returns and the profits that you would have otherwise garnered from the same.
When you are considering closing the FD account at SBI, you also need to submit the account certification for verification. So, make sure you keep that safe from the initial days only. FD accounts, like any other type of account, can be closed directly via online and offline methods. We have sorted out the easy online method for you to look into.
How to Close FD account in SBI online?
If you don’t want to visit the nearest branch of the bank and want to sort out everything from the comfort of your home, you must follow the steps that we have sorted out for you in this article.
- Open your browser and then open https://retail.onlinesbi.com/retail/login.htmOnce you are on the homepage, you then need to navigate to the login tab and enter the customer ID and password to log into the internet banking profile.
- Under the Menu, navigate to the Fixed deposits option
- Under that, click on term deposit from the drop-down menu
- If you are closing the account prematurely, you need to find the option from the dropdown and click on that accordingly.
- You then need to select the FD account that you wish to close.
- Under that, you will get a handful of reasons that you have to choose one from and explain why you wish to close the FD account.
- Once you are done filling out the details, verify the security codes and from there, you can directly close the FD accounts. Click on Confirm.
You will see a message popping up on the screen saying that the closing application has been submitted and is likely under processing. You will receive timely updates about the same on your registered mobile number that is linked with the bank account.
FD Closure on Maturity
We can’t stress this enough but there’s nothing better than closing your FD after it completes its term. This ensures that you will get all the rightful returns and profits that were set to be generated after the completion of the term.
After the FD has matured, one of the following three processes will happen:
- Auto-renewal
If you have set the option for auto-renewal of your FD account automatically after its initial maturity, you will be notified that your FD account has matured and that it’s time to renew it accordingly. Once you receive the maturity message, it will be followed up by the message concerning the auto-renewal.
- Auto liquidation
Another thing that happens when your FD at SBI account matures is the auto liquidation process. What happens is that the saved FD amount that has matured will be liquidated and the amount will be credited to your associated bank account. 9 out of 10 times, this is what most people do when it comes to FD maturity.
- Interest reinvestment
If you want to further expand your investment portfolio, you can easily go ahead and then reinvest the interest that you have generated from the principal amount invested in the FD.
How to Close FD account at SBI offline?
If you don’t want to bear the hassle of doing this online, especially when it comes to closing your FD account online, the same can be done offline too. However, for this, you will have to visit the nearest bank branch.
Once there, you need to follow the steps as mentioned:
- Contact a clerical staff and get an FD premature withdrawal form from them
- Fill out the application form with all the details as asked on the said form.
- During the submission, you also need to submit the documents that are required for verification. This will include the FD certificate, aadhar card, etc.
Once the application is submitted, the service manager will process the application and then send it for approval. Once done, your amount from the FD will be liquidated and then transferred to your linked bank account.
Conclusion
If you are one of those people who are considering closing their SBI FD account, we hope this article gives you all the possible insights that you likely need. We have mentioned both the online and offline methods in hopes that it caters to the needs of every user that comes across our article. You can also close the FD account via the SBI Yono app.
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