How to close SBI fixed deposit (FD) online

Fixed Deposits are one of the best low risks investment options in India. You can invest your savings in FDs from 7 days to 10 years. It gives you 6.5 to 7.5 per cent interest per year which is more than savings accounts. The good thing is that you can close your fixed deposit anytime you want. However, the Bank will charge some prepayment penalty if you close it before the maturity or end of tenure. Apart from this Bank offers significantly cheaper loans against FD. If you have some extra savings, it’s good to invest in FDs. 

If you have FD in your SBI bank and you want to close the SBI Fixed Deposit online, then you’re in the right place. In this post, we’re going to tell you in easy steps to close your SBI fixed deposit online. Closing a Fixed Deposit is an effortless task, and you can easily do it by visiting the bank branch or the Bank’s official website. You have the freedom to close your FD before or after maturity. Currently, there are two working methods to close your SBI fixed deposit.

  1. Close SBI Fixed Deposit by Visiting Branch
  2. Close SBI Fixed Deposit Through Internet Banking

Steps To Close SBI Fixed Deposit Online

  1. First of all visit the official OnlineSBI Website and login into your Internet Banking.

2. Now, click on the Login tab in the Personal Banking Section.

sbi-personal-banking-login

3. After that, enter your User ID and password and fill up the captcha.

sbi-personal-banking-login-details

4. Finally, click on the Login button, and you will be redirected to the dashboard.

5. Now go to the fixed deposit option, click on the e-TDR or e-STDR (FD) option, and click on proceed.

6. After that, you need to click on the ‘close account prematurely’ option.

7. Here, you can see a list of all your fixed deposits with the Bank.

8. Now, select the Fixed Deposit you want to close and click on the submit button.

9. After that, you need to reason for closing your FD and click on the Confirm tab.

10. Now, you will receive a password on your registered mobile number, which you need to enter in the required section.

11. After entering the password, you need to click on the confirm button.

12. That’s it! You will see a popup saying your e-TD or the e-STD account has been closed, and your Fixed deposit amount will be credited to your savings account in 3 working days.

Steps To Close SBI Fixed Deposit (FD) Offline

  1. First of all visit your nearest SBI bank branch and get a premature withdrawal form.
  2. Now fill the form with required details such as Name, Bank account details, FD number and other necessary details.
  3. After that submit the form to the Bank employee and he/she will process your request ASAP.
  4. Once the FD get closed you will receive a message on your registered mobile number and FD balance will get credited to your savings account.

Why You Should Not Close Your FD Prematurely

The Bank will not give you the compound interest you earned if you close your FD prematurely. Also, you need to pay some penalty charges, which can be changed according to the bank policy.

In simple words, suppose you deposited Rs 1 lakh in your SBI Bank FD with a tenure of 10 years. If your interest rate is 7% per year, the maturity amount would be Rs 2,00,160.

If you withdraw the FD after five years, you will get a penalty of 1%. You will get 7% – 1% = 6%. You will get a maturity amount of Rs 134,686. This is a loss of nearly Rs 65,000. Make sure to close FD if you need some money. Also, you can get a loan against FD, which allows you to get a loan at much affordable interest rates.

Frequently Asked questions

Can I Close an SBI FD Before Maturity?

Yes, you can close your FD anytime you want. However, you need to pay some percentage from your compound interest as penalty charges.

Is there a penalty for prematurely closing an FD with the State Bank of India?

Yes, there is a penalty for premature withdrawals from SBI FD accounts. There is an early withdrawal penalty of 0.50% for term deposits less than Rs. 5 lakh and a premature withdrawal penalty of 1% for term deposits above Rs. 5 lakh.

Can You Close An FD Online If It Was Not Opened Online?

No, you can’t close an SBI FD online if it was opened offline. However, you can visit the branch to close your account.

Which Bank Is Best For FD?

Punjab National Bank, ICICI Bank, Axis Bank, IDFC First Bank, SBI Bank, etc., are good for Fixed deposits. Make sure to check and compare the interest rates given by these banks before investing in an FD.

Conclusion

So it was the post about How to Close SBI Fixed Deposit (FD) Online. You will get almost double the money you invested if you invest in FD for ten years. If you have any queries or suggestions regarding this post, please ask me in the comment section. I would love to help you.

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