How to Break FD in HDFC Bank?

Share on :

One of the leading private banks in India, HDFC Bank offers its customers a wide range of fixed deposit (FD) schemes, allowing them to grow their savings. It also provides flexible account opening and closure facilities, making FDs attractive to investors. This blog will guide you on breaking FD in HDFC Bank, discussing online and offline procedures.

Table of Contents

How to Break FD in HDFC?

An FD account holder can close their account with HDFC Bank through the following methods. Let’s find out more about these methods.

1. Online

The following is a stepwise process guiding you on how to break FD online in HDFC using its net banking portal.

Step 1: Visit the official net banking portal of HDFC Bank.
Step 2: Log in to your online account using your registered credentials. If you are not a registered user, you must first sign up.
Step 3: Find the ‘Fixed Deposit’ option from the left-hand side corner of the main dashboard and click on it.
Step 4: A few options will be displayed. Select the ‘Liquidate Fixed Deposit’ option.
Step 5: Select the type of FD account you want to close from the drop-down box.
Step 6: Click on the ‘Continue’ tab.
Step 7: Provide all the required details for closing an FD account and submit it after verifying.

Upon successful closure, the bank will credit your entire FD investment along with interest earned to your linked savings/current bank account.

2. HDFC App

Here is a step-by-step guide you must follow with due diligence in order to know how to break FD in the HDFC App.

Step 1: Install the HDFC mobile banking app on your preferred device.
Step 2: Use your registered credentials to log in and proceed further.
Step 3: Click on the ‘Menu’ option from the main page.
Step 4: Tap on the ‘Save’ option, followed by the ‘Deposits’ option.
Step 5: Choose the type of FD account you want to close and click on the ‘Break this Deposit’ tab.
Step 6: You will be redirected to a new page, displaying your total FD investment amount and interest earned.
Step 7: Verify the FD amount and click on the ‘Confirm’ tab.

Upon successful closure, the bank will transfer the specified FD investment amount and interest earned to your linked savings/current bank account.

3. Offline

Besides online, there is also an offline method of closing an HDFC fixed deposit account. Here’s how to do so.

Step 1: Visit the nearest branch of the HDFC Bank.
Step 2: Ask a bank representative for a premature FD withdrawal application form.
Step 3: Fill in the form with all the necessary details, such as your FD account number, your personal information and bank account details.
Step 4: Attach all the required documents with the form and submit it to the representative.

The bank representative will further process your application form and documents. Upon successful closure, you will receive the total FD investment amount along with interest earned in your linked savings/current bank account. Therefore, now you know how to break FD in HDFC Bank.

Closing an HDFC FD on Maturity

An FD account holder is often advised to opt for account closure at the end of the tenure. To initiate the FD closure process, a depositor has to submit a fixed deposit receipt (FDR) in advance, generally a week before the maturity of the FD scheme. Upon reaching maturity, HDFC Bank credits the entire FD investment to the depositor’s bank account or draws an account payee cheque.

Things to Remember Before Closing FD Account

Now that you know how to break FD in HDFC Bank, be it before or after maturity, there are some things that you should keep in mind before initiating a closure process. Let’s take a look.

To close an FD account, an individual has to visit the same branch of the HDFC Bank where the account was opened.
In case of premature closure of an FD account, a depositor will be liable to pay a penalty that ranges between 0.50% to 1% of the interest income.
An individual cannot close an HDFC Tax-Saver FD before the completion of its 5-year lock-in period.
An FD account holder must make sure that his/her fixed deposit account does not come with any penalty for premature closure. Upon closing a regular FD with a penalty for premature closure, the bank does not pay the entire interest income earned from it.

Conclusion

Besides knowing how to break FD in HDFC Bank, an account holder must be aware of the terms and conditions associated with it. These terms and conditions generally vary for different banks and financial institutions and are subject to change over time. Make sure to go through such terms carefully and verify them with a bank representative before initiating the FD closure process.

FAQs

Can I change my HDFC FD tenure before maturity?

No, you cannot change your HDFC FD maturity and tenure details once it is opened. If required, an account holder can close their existing FD account and apply for another FD with a new tenure.

Can I close my HDFC FD online if it was opened offline?

No, an FD account holder cannot close their HDFC fixed deposit online if it was opened offline. The individuals who have opened their FDs through the net banking portal or the mobile app are only eligible for the online closure facility.

How to close a joint HDFC FD?

In case of a joint HDFC FD closure, the primary account holder has to submit the premature FD withdrawal application form duly signed by all the joint account holders.

Is there any better option other than FD closure?

Besides closing an FD account made with HDFC Bank, an individual can avail of a loan/overdraft facility amounting to 90% of the FD investment amount. Moreover, one can also choose to avail of the FD sweep-in facility, an easier liquidity alternative to FD closure.

Can I withdraw the total FD investment amount upon maturity?

Yes, you can withdraw the total principal amount you invested in an FD scheme along with your interest income upon reaching maturity.