How to Close an Bharat Bank Fixed Deposit Account | Wint Wealth
Updated on: Sep 7th, 2023
Fixed Deposits (FDs) are one of India's most trusted investment options due to their safety and fixed returns. But there might be instances when you need to break or prematurely close your FD for various reasons. In such cases, knowing the process is essential to avoid unnecessary hassles.
This blog walks you through the detailed steps of breaking an FD in Bharat Co-operative Bank and answers some frequently asked questions related to the topic.
How to Break an FD in Bharat Co-operative Bank
- Log in to your account through the bank's website or mobile app.
- Navigate to the 'Fixed Deposit' section.
- Look for the 'Premature Closure' or 'Break FD' option.
- Choose the FD account you wish to break and confirm the action.
- An OTP will be sent to your registered mobile number and email address.
- Enter the OTP to complete the verification process.
- After deductions (if any), the amount will be credited to your linked savings account.
- Visit the nearest Bharat Co-operative bank branch.
- Approach the customer service desk and express your desire to break your FD.
- Fill out the premature withdrawal form, providing the necessary details.
- Submit the form to the branch officer.
- After verification, the amount, after deductions (if any), will be given to you either through a cheque or transferred to your bank account.
Is there a penalty for premature withdrawal of FD in Bharat Co-operative Bank?
Yes, the bank may levy a penalty on premature closure of a fixed deposit. However, in the case of death claims, no penalty is charged.
How is the interest calculated if I break my FD prematurely?
The interest is calculated based on the rate applicable for the period the deposit has been with the bank minus 1%, as per the bank's terms.
Can I break my Tax Saving FD before its 5-year tenure?
No, the Tax Saving FD has a mandatory lock-in period of 5 years. Premature withdrawal is not allowed.
Is the interest earned on the broken FD taxable?
Yes, if the interest earned exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS will be deducted.
Do I need to visit the bank branch to break my FD if I open it online?
No, you can break your FD online if you initiated it through the bank's website or app.
In the case of a joint FD, if one holder wants to break it, can it be done?
Both joint holders must consent for premature withdrawal of the joint FD.
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