How to Close an State Bank of India Fixed Deposit Account
Updated on: Sep 5th, 2023
Through its Fixed Deposit (FD) programme, the State Bank of India (SBI) provides an opportunity to save money and get income. What happens, though, if you suddenly require access to the money? It takes time to close or break your FD with SBI.
This blog will walk you through the process of shutting your SBI FD so that your money is available when you need it most.
Steps to Close an FD in State Bank of India (SBI)
- Head over to the State Bank of India branch closest to you.
- Asking for FD Closure: Ask how the Fixed Deposit (FD) can be terminated, or let the person know you intend to break the FD.
- Giving the necessary information: Give all the information. Send in the necessary paperwork.
- Acknowledgement: The bank will give you a receipt or confirmation after the FD has been cancelled.
- SBI Mobile App accessibility: Launch the SBI mobile app. Type in your login information.
- Open 'Term Deposit' in the menu: Find the 'Term Deposit' area after logging in.
- Choosing the FD for Closure: Select the FD you want to close early or terminate.
- OTP verification: An OTP will be delivered to the registered mobile number you provided. For your request to be validated, enter this OTP.
- Confirmation: Following processing, you will get a letter attesting to the withdrawal of your FD.
Is there a penalty for withdrawing an FD in SBI?
Yes, there may be a penalty if you break an FD before it matures. Certain programmes might not impose penalties on deposits under 5 lakh rupees held for more than 181 days. However, up to 1% penalty may be applied if you withdraw investments totalling more than 5 lakhs before 181 days.
Can I prematurely terminate my tax saving FD in SBI?
No, it is impossible to terminate an SBI Tax Saving FD as it has a lock in 5 years.
How soon will I receive my funds after breaking the FD?
The funds are typically credited to your linked account immediately upon breaking the FD offline.
Will interest be paid if I break my FD before maturity?
Yes, you will continue receiving interest accrued since the closing date. It might be less expensive than the initial, agreed-upon price.
Do I have to give a reason for closing my fixed deposit?
No, there's no requirement for you to provide a reason for ending your fixed deposit.
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Lock in returns as high as
8.35% before they go down
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