How to Close an Cosmos Bank Fixed Deposit Account
Updated on: Sep 7th, 2023
The need for urgent liquidity is a common challenge faced by many investors. Closing a fixed deposit (FD) might be the most viable solution in such times. Cosmos Co-operative Bank, a renowned financial institution in Western India, provides a streamlined process for premature FD withdrawal.
In this blog, we'll delve into the step-by-step guide on how to close your FD at Cosmos Co-operative Bank and address some frequently asked questions regarding the same.
How to close an FD in Cosmos Co-operative Bank
- Visit the nearest Cosmos Bank branch: Locate and visit your closest branch where you have the FD.
- Collect the term deposit closure form: Ask the bank representative for a term deposit closure form and fill it out diligently.
- Submit required documents: With the form, submit your FD receipt or certificate to verify the deposit.
- Receive the amount: Once verified, the bank will break your FD, and the amount will be either credited to your account or given to you directly.
- Log in to Cosmos Co-operative Bank’s internet banking facility: Use your credentials to access your account.
- Navigate to the FD section: You’ll find an option related to FDs or term deposits.
- Select the FD you wish to break: There will be an option to break or close the FD. Click on it and follow the on-screen instructions.
- Confirmation: Once the process is complete, you will receive a confirmation, and the FD amount will be credited to your linked bank account.
Why would someone need to close an FD before its maturity?
While FDs are meant to be long-term investments, financial emergencies or better investment opportunities might necessitate premature withdrawal.
Are there any penalties for closing an FD at Cosmos Co-operative Bank?
Yes, Cosmos Co-operative Bank charges a penalty of 1%, levied on the rate applicable for the tenure for which you have kept the deposit.
Can I partially close my FD at Cosmos Co-operative Bank?
Usually, banks don't allow partial closing of FDs. You would need to break the entire FD and reinvest the amount you don't need.
How long does it take for the funds to be available after closing the FD?
The funds are typically available immediately if done in person at a branch and may take up to a day if done online.
Is the interest earned on my FD till the closing date taxable?
Yes, the interest earned is taxable, and if it exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS will be deducted.
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