Can I Withdraw Money From Fixed Deposit 3 Months After Maturity

What is the process of withdrawing FD earlier information technology matures?

• Fixed Deposit
• 10 Months ago

Fixed deposits (FDs) are among the most pop instruments to salve and invest money that offers good returns and is easy to open. Putting information technology but, an investor puts a lump sum amount in his/her depository financial institution for a fixed tenure at an agreed rate of involvement, and at the finish of that tenure, the investor receives the corporeality he has invested plus compound interest on the aforementioned amount. Thus, FDs are also called term deposits.

Banking company FDs are among the safest and most preferred investment options and quite popular in India amidst adventure-balky investors. Banks offer FDs with a wide range of tenure options ranging from vii days up to 10 years. Moreover, FDs are equally liquid investment options, i.e., i tin open up and close it someday as per their convenience.

Investors can choose to keep their FDs till maturity or admission it before the time via premature withdrawal. Nonetheless, it's non advisable to prematurely close your FD. In case of dire need or emergency, the investor can opt for a stock-still deposit foreclosure process, for which banking institutions levy an FD foreclosure fee as a penalty.

FD offers diverse advantages:

1. Interest rate: The involvement rate on a fixed deposit is stock-still, and the rate depends on the term an investor wishes to agree it for.
2. Secure investment: Fixed deposits offer guaranteed returns.
3. Flexible tenure: Banking institutions offer fixed eolith tenures ranging from vii days to 10 years.
4. Loan against FD business relationship: While FDs are fixed for an agreed tenure, the investor tin can take a loan against information technology when he/she needs funds.

How to close the FD before the maturity engagement

The investor can opt for FD foreclosure in full or parts (i.east., FD foreclosure or fractional withdrawal). There is a nominal penalty charged on FD foreclosure and withdrawal. However, the money is transferred to the depositor's account in no fourth dimension. In case of fractional withdrawal, investors can withdraw a role of the entire FD value. The withdrawal amount will be credited to the investors' savings depository financial institution account while remaining invested and standing to earn interest.

There are both online and offline procedures available for closing the FD earlier the maturity date.

1. Offline FD Foreclosure procedure: An investor should follow the below-mentioned steps for closing his/her FD before the maturity appointment:
   1. Collect all documents, such as ID proof, eolith certificate, and photographs.
   2. Then, visit the nearby bank branch or the depository financial institution branch where the FD account was opened.
   3. Fill and submit the FD account closing course to the bank representative.
   4. The bank representative shall aid you lot with the FD foreclosure process.
   5. On successful closure of FD, funds will be transferred to your savings bank account.
2. Online FD Foreclosure procedure: Every bank has its own FD foreclosure procedure to close an FD business relationship successfully. To shut a stock-still deposit online, the investor must be registered with the banking concern'south net banking pick. Find below the list of steps followed at the top 4 banks for fixed deposit foreclosure.

FD locking period for foreclosure

For investors looking for FD foreclosure, below is the listing of guidelines mandated by the Reserve Bank of India:

1. Withdrawal within 3 months: At that place is a minimum locking period of three months when the investor is invested in a fixed eolith with a non-banking fiscal company. The fixed eolith cannot exist liquidated before three months, except in case of death.
2. Withdrawal between 3 and 6 months: The investor will only get the principal amount if the FD is foreclosed between iii and 6 months, and no interest volition exist earned.
3. Withdrawal after vi months: In case the investor chooses to do FD foreclosure subsequently 6 months, the investor will be able to liquidate the FD, just the interest payable is ii%–3% lower than the interest rate applicable to public eolith.

Document required for FD foreclosure

For investors looking for FD foreclosure, the following set of documents are required:

• Identity proof: Any one of the following document every bit identity proof
• Passport
• PAN menu
• Voter ID card
• Driving licence
• Government ID card
• Photo ration card
• Senior citizen ID card
• Accost proof: Any one of the following document equally address proof
• Passport
• Telephone bill
• Electricity bill
• Banking concern statement with bank check
• Document/ID card issued past the Post Office
• Latest passport size photograph

Disadvantages of FD foreclosure

The following are the disadvantages of FD foreclosure. Hence, information technology's not recommended to shut the FD business relationship prematurely unless at that place is a dire need for coin in case of an emergency.

1. Penalty for foreclosure of FD: Banking concern charges a punishment when the investor withdraws money from your stock-still deposit before maturity. The fee varies across banks and is generally at 0.5% to 1% of the total eolith amount. This essentially means that your stock-still deposit will yield involvement at a rate of 0.5% to i% less than what you would have otherwise obtained. So essentially, the liquidity is available but at a cost.
2. Loss of potential earning: When yous make a premature withdrawal, you do non receive the corporeality guaranteed at the time of booking the FD.

Determination

We at Shriram City Union Finance Limited have the most reliable fixed deposit schemes for your secured and better future. Contact us any time to understand in item well-nigh involvement earned on FD renewal. Moreover, we follow easy ways for premature withdrawal of stock-still deposits if a client deals with a cash crunch.

Frequently Asked Questions

• Is Shriram City a safer option for creating Fixed deposits?

The fixed deposit of Shriram City Union Finance limited is rated FAAA/Stable by CRISIL and MAA+ with Stable Outlook by ICRA.

• Is there any penalty on making a fixed deposit withdrawal before the maturity menstruation?

Yes, making a stock-still eolith withdrawal before the maturity flow comes upward with the penalty charges. The amount of punishment differs from depository financial institution to bank based on their policies.

• Tin can ane make FD deposit foreclosure offline, which is created via offline mode?

Usually, if the stock-still eolith is created offline, it will non be reflected in the FDs list created online. But still, some banks accept given the provision to shut all the fixed deposits via online mode. Some other way to close the offline FD sitting from the comfort of dwelling house is by requesting customer care.

• What is the penalty accuse applicable on FD Foreclosure?

It is a sure pct of the interest amount the depositor earned on the fixed deposit. This percentage varies

• Can one interruption the fixed eolith without paying the penalization?

Unremarkably, the punishment is levied on premature withdrawal of fixed eolith. Still, some financial institutions are not charging any penalization if you lot accept held a fixed eolith for a minimum of 7 days.

• Can those with fixed deposits breakable that come with a lock-in flow?

No, you cannot suspension that fixed deposit.

• Can I break my tax-saving fixed eolith before the maturity catamenia?

No, equally per the Income Tax Human action, you cannot break tax-saving FDs earlier 5 years.

• Is the articulation business relationship holder'south signature required to break the fixed deposit?

 Yes, the joint account holder's signature is required for closing the fixed eolith.

Source: https://www.shriramcity.in/articles/what-is-the-procedure-of-withdrawing-fd-before-it-matures

Posted by: dinhuponce.blogspot.com

Share this post