How to Close FD in ICICI Online ?
Established in 1994, ICICI bank is a fully owned subsidiary of Industrial Credit and Investment Corporation of India and is considered one of the largest banks across the nation. In terms of the asset management company and market cap, it is the second-largest bank since 2018. They have more than 4800 branches and operate in 16 different countries including the USA, UAE, UK, Canada, China among others.
ICICI Bank FDs are considered a secure investment alternative that guarantees consistent returns, special interest rates for senior citizens, various interest payment options, no market risk, and income tax benefits.
In this article, we will particularly talk about the online closure process of the ICICI FD account along with certain other aspects.
Closure of FD on Maturity
The process of FD closure vary from bank to bank, however, banks usually use either of the following options to deal with FD when they mature:
Auto-renewal of FD is a common exercise among banks. In this, The FD is renewed for the same tenure but at the current FD rates. This option is exercised if the investor has not provided any instructions thereon.
The FD is liquidated on the due date in this option. This means that the transfer of the entire fund value in the linked savings bank account mentioned by the depositor at the time of initiating the FD.
Reinvestment of Interest
If this option is chosen, the interest earned on the deposit will get reinvested for the chosen period on the maturity date. Therefore, the remaining principal will be credited to the linked savings account.
Closing of FD Before Maturity
FDs unlike their name are not completely fixed as they can be closed anytime. There can be times where investors may find themselves in an urgent need of money but do not want to loan it out. In such a scenario, the FD can act as a financier. Banks provide the facility to close or withdraw FD prematurely. There is a nominal penalty charged in this case and the corpus is transferred to the savings account of the depositor. Also, investors must note that premature withdrawal can be done in part or fully i.e. Partial Withdrawal and Premature closure.
Step by Step Process
- Login to the ICICI net banking portal by using your relevant credentials.
- Go to the ‘My Account’ section and click on the ‘Deposits’ tab.
- Further click on the ‘Service Requests’ option.
- Click on the ‘Request for’ tab and select ‘Premature withdrawal of FD’ from the menu in the drop-down and select ‘Continue’.
- Go through the information displayed which is the FD account number, saving account details, and amount. Confirm the name after duly verifying.
- Enter the digits of your debit card to authorize the liquidation of your FD.
- Enter the OTP sent to the registered mobile number and continue.
- If OTP authentication is successful, the investor will receive a confirmation regarding the withdrawal or closure on their email and registered number.
- The maturity amount will be credited to the savings account selected while raising the request.
- Remember that you can’t cancel a closure request.
Offline Closure Process
To close ICICI FD offline, investors will need to visit the nearest branch of ICICI with their valid ID proof. Once you obtain the required documents and forms from the branch, fill them duly with the relevant details. The FD account will be terminated and the principal amount along with the interest will be credited to your linked savings account.
Key Points to know Before Closure of Fixed Deposit
- On premature closure or withdrawal, ICICI bank levies a penalty of 1%.
- If you have invested in a 5 year tax saving FD, partial or full withdrawal will not be allowed.
- On the premature closure of the FD account, investors lose on the potential compound interest that they would have earned if they continued the FD for its original tenure.
Frequently Asked Questions (FAQs) - Close FD with ICICI Bank
Q. Can I withdraw a certain portion of the ICICI FD account prematurely?
A. Yes, partial withdrawal is allowed from ICICI Bank FDs.
Q. Can I close my FD online if it was opened offline?
A. Yes, but you must make sure that the FD reflects in your net banking account. And if it doesn’t, contact your branch so that in the future you can close it through online mode.
Q. Can I withdraw prematurely if my FD has a lock-in period?
A. No, In the case of the lock-in period, that won’t be possible.
Q. Should NRIs who return back to India close their NRE, NRO FD?
A. Yes, NRIs who come back to India and lose the status of NRI can ideally close their FD Accounts.
Q. Is there a need to get signs of all account holders in case of a joint account?
A. Yes, investors will need to get signs of all the joint holders to close the FD.
Also Read :
ICICI Bank Fixed Deposit Rates
ICICI Mutual Fund SIP Calculator