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.
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.
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.
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.
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:
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.
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.
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.
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:
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.
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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