How to Close an Karur Vysya Bank Fixed Deposit Account
Updated on: Aug 31st, 2023
When life throws unforeseen financial challenges, having the flexibility to liquidate assets becomes crucial. Though heralded for their stability, fixed Deposits sometimes need to be broken prematurely. Understanding the process is paramount if you've parked your funds with Karur Vysya Bank and are considering breaking your FD.
With varied policies and potential penalties, making informed decisions can save time and money. This blog is designed to guide you through the nuances of prematurely breaking an FD at Karur Vysya Bank. Read on to equip yourself with the know-how for a seamless financial manoeuvre.
Procedure to Close Karur Vysya Bank Fixed Deposit Account
Step 1: Complete the account termination form/FD release form
- To initiate the process of terminating your fixed deposit at Karur Vysya Bank, begin by filling out the account termination form.
- Visit the bank's local branch, collect the relevant form, and provide it with the necessary documents.
- Submitting this form to the branch supervisor or designated official is crucial.
- In cases of joint accounts, the signatures of all the account members are mandatory on the termination form.
Step 2: Include your KYC documents
- Every fixed deposit account member must provide copies of their KYC documents.
- This should consist of identity verification and residential proof.
- Ensure you sign these copies before submission for validation.
Step 3: Present your Fixed Deposit Certificate or Receipt
- Upon opening a fixed deposit, the bank furnishes you with a deposit certificate or a receipt.
- This document highlights deposit sum, duration, and interest rate details.
- Presenting this certificate or receipt is essential when terminating the fixed deposit.
- All account members should sign this document.
- Upon verifying the paperwork, you will then proceed to claim the remaining balance.
Will I still earn interest if I close my FD early?
You will earn interest, but it is usually at a reduced rate compared to the originally agreed rate.
Can I close my FD online?
Many banks offer online services to break FDs. Check with your bank's online portal or mobile app.
How long does it take to get my money after closing the FD?
Usually, the funds become available immediately after breaking the FD, but it might take a few hours to a few days based on the bank's procedure.
Do I need to submit any documents when closing the FD?
Generally, if you're breaking the FD in person, you might need to submit the FD receipt or certificate. Online procedures might not require physical documents.
Are there any tax implications for closing an FD?
The interest earned on the FD is taxable. However, breaking the FD doesn't introduce new taxes. Still, TDS may be applicable if you earn interest above a certain threshold in a financial year.
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