How to close SBI fixed deposit (FD) online

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Fixed Deposits are one of the best low risks investment options in India. The term ofFrom 7 days to 10 years you can invest your savings in FDs. It gives you 6.5 to 7.5 percent interest per year which is more than savings accounts. 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 very cheaper loans against FD. If you have some extra savings then it’s a good practice 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 are 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 a very easy task and you can easily do it by visiting the bank branch or by 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, Password and Fill up the captcha.

Sbi-Personal-Banking-Login-Details

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

5. Now go to the fixed deposit option and 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 click on the FD which you want to close and then click on the submit button.

9. After that you need to give the reason for closing your FD and click on 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 will give you the compound interest that you earned if you close your FD prematurely. Also you need to pay some penalty charges which can be change 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 rate of interest is 7% per year then the maturity amount would be Rs 2,00,160.

If you withdraw the FD after 5 years then 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 really in need of some money. Also you can get loan against FD which allows you to get loan in much affordable interest rates.

Frequently Asked questions

Are there penalty charges for premature closure of FD?

Yes every bank charges some amount if you close your FD prematurely

Can you close an FD online if it was not opened online?

Yes you can close FD online if it was not opened online. However you can contact your banks customer care to know exact answer.

Can I close FD before maturity?

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

Which bank is best for FD?

Punjab National Bank, ICICI Bank, Axis Bank, IDFC First Bank, SBI Bank, etc are good for Fixed Deposit. Make sure to check and compare the interest rates given by these banks before investing in a 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 10 years. If you have any query or suggestions regarding this post then feel free to ask me us the comment section. We would love to help you.

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