How to Close an Tamilnad Mercantile Bank Fixed Deposit Account
Updated on: Sep 1st, 2023
In banking, Fixed Deposits (FDs) are touted for their stability and assurance of returns. Yet, unforeseen circumstances might propel you to liquidate your FD ahead of its tenure. For those with investments in Tamilnad Mercantile Bank, understanding the procedure for premature FD closure becomes pivotal.
Navigating the banking corridors with their distinct protocols can sometimes seem intricate. This guide aims to demystify the steps involved in breaking an FD at Tamilnad Mercantile Bank, highlighting any associated penalties and offering a comprehensive view of the process. Let's embark on this informative journey to make your financial moves confidently.
Closing an FD in Tamilnad Mercantile Bank
Complete the FD Termination Form
- Begin the process by filling out the FD termination form available at the bank.
- Obtain the form from the local branch and provide the necessary details.
- Ensure the branch supervisor or the responsible officer receives the form.
- In cases of joint accounts, every account holder must endorse the form.
Provide KYC Details
- Every account holder should attach their respective KYC documents.
- This encompasses both identity and address verification proofs.
- Before submission, all documents should have the holder's self-confirmation.
Present the FD Certificate or Receipt
- On initiating a fixed deposit, the bank furnishes a certificate or a receipt detailing the deposit specifics.
- This document must be showcased during FD termination, indicating deposit value, duration, and interest rate.
- Every account holder must sign this proof. Post verification, you'll be guided to claim the remaining amount.
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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