How to Close SBM Bank Fixed Deposit (FD) Online
Updated 08 Dec 2023
Fixed Deposits are an age-old instrument, preferred for their safety and stable returns. However, life's unpredictable nature can sometimes require us to liquidate our FDs before their maturity. Knowing the ins and outs is crucial if you have invested with SBM Bank and are pondering an early withdrawal.
The banking landscape, laden with its unique norms, makes premature FD breaking a choice necessitating careful consideration. This guide is dedicated to elucidating the process of FD closure at SBM Bank, shedding light on any penalties, and providing a stepwise breakdown. Navigate your financial decisions with clarity as you dive in.
Closing an FD in SBM
Fill out the FD Account Closure Form
- Obtain and complete your branch's FD Account Closure or Fixed Deposit Liquidation form.
- Joint account holders must all sign the form.
Attach KYC Documents
- Attach copies of KYC documents, such as PAN (serves as identity proof) and address proof.
- Ensure documents are self-attested by all account holders.
Submit FD Certificate/Receipt
- Present the FD certificate or receipt issued by the bank as proof of deposit, signed by all account holders.
- The bank will verify and prompt for withdrawal of the balance. Options may include cash, cheque/DD, or transfer to another account.
- Banks typically notify via registered email or SMS once the FD account is closed.
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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