How to Close SBI FD Online
SBI i.e. State Bank of India offers its customers a number of Fixed Deposits options to park their surplus money and enjoy decent interest rates on it over a specific tenure. The investors simply need to deposit the fund at the time of initiating the account and choose a tenure that seems convenient and feasible to them. During this tenure, the depositor is not allowed to withdraw any funds or deposit anymore except in certain cases.
There may be circumstances where you require to close your FD account with SBI prematurely or say even after it matures and to do the same, you are currently not present in the city where the home branch is situated. So with the robust online infrastructure of SBI, you can close the FD account online without much worry and hassle.
In this article, we will discuss the online process of FD closure in SBI and different aspects of the same.
SBI FD Closure on Maturity
If the maturity tenure of the FD account is expired and the investor hasn’t taken any action, then the bank has the following ways to deal with it:
Your bank will liquidate the FD account on the due date and transfer the proceeds to the linked savings account.
The bank will renew the FD automatically for the original term or one year of the FD account on the due date.
Reinvestment of Interest:
If you opt for this option, the interest earned on the FD will get reinvested for the chosen tenure on the maturity date. Therefore, the remaining principal amount will be credited to the savings account.
Step by Step Process
- Log in to the SBI net banking portal by using your credentials.
- Under the Fixed Deposit tab, click on e-STDR or e-TDR. Here STDR is a special term deposit receipt and TDR is a term deposit receipt. Now, investors will need to click proceed.
- Click on the option ‘Close account prematurely’.
- Details of your FD account with the bank will be listed out.
- Tick right or check on the Fixed Deposit you wish to close and press the submit button.
- Mention the reason why you wish to close the FD account and click on the Confirm button.
- Enter the high-security password received on your registered mobile number.
- Click on the confirm button and then the message will appear on the screen saying ‘Your e-TDR or e-STDR account has been closed successfully’.
- Upon the closure of the FD account, the amount will be credited to your linked savings account.
- Investors should note that this facility is available between 8 AM to 8 PM (IST).
What if investors want to close fd through a branch visits ?
Investors can go forward with the FD closure through the traditional way of personally visiting the branch. This can be done by following the below process:
- Visit the nearest SBI home branch to close your FD account.
- Do not forget to carry the FDR with you. (FD Receipt)
- Mention your account number and duly sign the backside of the FDR.
- Submit the FDR to the concerned person or executive.
- They will calculate your exact maturity amount and terminate the FD.
- The matured corpus will be a credit to the account you mentioned.
Should you opt for Premature Closure ?
You have the option to close the FD account before maturity or on the due date. Both of these options are available online. Nevertheless, you should close the FD only at the time of maturity and only use the premature closure option if in dier need of money.
The closure of FD prematurely will lead to losing compound interest you could have earned. A penalty on interest will also need to be paid and this varies as per bank rules. SBI charges a penalty of 0.5% for the cases of premature closure of FD upto Rs, 5,00,000 and 1% above Rs 5 lakhs.
FAQs - About How to Close FD in SBI
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, depositors will need to get signs of all the joint holders to close the FD.
Also Read :
How to Close Fd in ICICI Online