How to Withdraw Your Fixed Deposit on or Before Maturity?

You book a fixed deposit, it is for a specific term. Generally, you close your FD after it matures at the end of this term. In case, you want to make a premature withdrawal, then you will have to give an FD closing application. Understanding the process can help you access funds when needed, so read on to learn the complete steps involved. 

What is Fixed Deposit Maturity?

When you apply for a fixed deposit, you invest your money for a certain period. This can be anywhere between 7 days and 10 years. Based on your financial goal, you can choose a comfortable tenure. After the FD maturity period, you receive the invested principal amount back. If you have booked a cumulative FD, you also receive the interest earned. If not, you will get the payout at your chosen intervals.  

How to Close an FD on Maturity

After your fixed deposit has matured, you can withdraw the funds and transfer the money to your savings account or renew your FD. There is also a third scenario when your fixed deposit has matured, and you have left it unattended. In that case, there are two possibilities:

• The bank may transfer the funds to your savings account
• The bank may renew your FD for the same tenure

If you want to withdraw your FD on maturity, follow these steps:

1. Step 1: Visit the financial institution 
2. Step 2: Submit your FD receipt
3. Step 3: Ask to close the FD
4. Step 4: Complete the signing process
5. Step 5: Submit your bank details (as per your preference)
6. Step 6: Receive your money in your account

To withdraw the FD amount online, you can log into your net banking account and follow the process as mentioned on the dashboard. Most financial companies will automatically transfer the funds if you have not opted for auto-renewal.

What is Premature Fixed Deposit Withdrawal?

In case you want to make a withdrawal before the tenure ends, you can do so. Keep in mind that doing this can reduce your gains as you may not get the interest rate decided at the time of application. Premature withdrawal results in an interest penalty but helps you when you need to access funds for urgent needs. 

Say you have invested ₹5 lakhs for 5 years, and there is a medical emergency in your family. In that case, you may want the ₹5 lakh corpus before the FD maturity period so you can deal with this crisis. 

How to Close Your FD Before Maturity

In case of early withdrawal, you may have to pay FD closing charges based on your issuer’s policy and the investment terms. Here’s what the online and offline process involves:

The offline FD closing process goes like this:

1. Visit the financial company
2. Ask for an FD cancellation form
3. Fill out the form
4. Submit the required documents (if asked for)
5. Submit your form along with these documents
6. Receive your money in your account

In case you are following an online process, you can follow these basic guidelines:

1. Visit the website of the issuer
2. Log in using your login credentials
3. Select the prompt ‘Premature Close of FD’
4. Enter the details and submit your cancellation

You will receive the money after the approval of your FD closing application. The online process is usually much faster than the offline process. So, if you want your funds instantly, try to go for the online process. Make sure you have your fixed deposit receipt with you to access the number while closing your FD.

FAQs on Fixed Deposit Closure

Can I close my fixed deposit automatically upon maturity?

Yes, you can close your FD on maturity by ensuring you contact the issuer and transfer the amount to your savings account. You can close your FD before it matures as well.

Is it possible to close a fixed deposit prematurely instead of waiting for maturity?

Yes, it is possible to close your FD before it matures. Fill in the FD closing application, and it will be approved. In this case, the interest on your fixed deposit will not be the same as when you booked it since premature withdrawal comes with a penalty. Some banks may also require additional FD closing charges.

Can I close my fixed deposit online or do I need to visit the bank?

You can close your fixed deposit online, whether you are closing it before maturity or upon maturity. The online process may be much faster, but you can also close your FD offline by visiting a branch of the bank or NBFC yourself.