How to Close an Indian Overseas Bank Fixed Deposit Account
Updated on: Sep 5th, 2023
Fixed Deposits (FDs) are one of India's most popular and trusted investment avenues. They provide a secure way to grow your savings and offer decent returns. But life is unpredictable, and there might come a time when you need urgent access to your funds.
Breaking an FD before its maturity can be daunting for many, especially if they aren’t familiar with the procedure. This guide sheds light on the process of prematurely breaking your FD in Indian Overseas Bank, ensuring you can access your funds with ease when you need them the most.
Closing an FD in Indian Overseas Bank
Visit Your Branch
- Start by visiting the Indian Overseas Bank branch where you opened your FD.
- Obtain an FD account closure form.
- Fill it out accurately and ensure it's signed.
- If the FD has joint holders, all must sign the form.
Attach KYC Documents
- Along with the completed form, attach self-attested copies of your KYC documents.
- This typically includes your PAN card and other proofs of identity and address.
- Ensure you have all the documents to prevent delays in your FD closure.
Submit FD Certificate:
- Hand over the FD certificate or FD receipt for verification.
- Once the banker verifies everything and it's in order, they will guide you on withdrawing the balance amount.
- You can get the funds in cash, through a cheque/DD, or even transfer it to another account.
What is the penalty for closing FD in IOB?
Premature withdrawal: All IOB FDs can be withdrawn prematurely except for the tax-saving FD. There is no penalty for deposits below INR 5 lakhs. For deposits greater than INR 5 lakhs, the penalty is 1%.
What are the rules for closing a Fixed Deposit?
Penalty: You can pay a penalty if you want to withdraw your FD before maturity. A bank usually charges between 0.50% to 1.00% of the interest as a penalty. The applicable penalty may change according to the discretion of the bank.
How do I get my money back from a fixed deposit?
There are convenient options available to investors to withdraw the amount from a fixed deposit after maturity. Firstly, visiting the bank's branch office allows for a traditional withdrawal process. This can be done by completing the necessary form and submitting the required documents.
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