How to Break FD in SBI Online and Offline?

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Offered by most Indian banks and financial institutions, fixed deposit is a popular investment option among risk-averse individuals, allowing them to grow their savings or generate regular income. It is one of the term deposits, well-known for its easy opening and closure methods. This blog focuses on how to close fixed deposits in SBI online and offline.

Table of Contents

How to Close SBI FD?

There are three ways of closing or breaking an SBI FD account. Let’s find out those ways.

1. How to Break FD in SBI Online

Here’s how to close fixed deposits in SBI online through their net banking portal.

Step 1: Visit the official net banking portal of the State Bank of India and log into your online account using your registered credentials.
Step 2: On the main dashboard, find the ‘Fixed Deposit’ option from the navigation menu and click on it.
Step 3: Select ‘e-TDR/e-STDR’ from the displayed options and click on the ‘Proceed’ tab.
Step 4: Next, click on the ‘Close Account Permanently’ tab.
Step 5: Choose the type of SBI FD account you want to close.
Step 6: Click on the ‘Submit’ tab.
Step 7: Specify the reason for closing the FD account in the ‘Remarks’ box and click on the ‘Submit’ tab.
Step 8: The bank will send you a security password on your registered mobile number. Enter the password carefully and click on the ‘Confirm’ tab.

Upon successful closure, you will receive a verification message on your device and the amount of FD investment on your linked savings/current bank account.

2. How to Close FD in SBI Yono App

Look at this stepwise process on how to close fd in sbi yono app before maturity.

Step 1: Download the Yono App on your preferred device.
Step 2: Log in to access your SBI account using your registered credentials. If you are not a registered user, sign up for access.
Step 3: Click on the ‘Deposits’ menu from the main page.
Step 4: Choose the ‘Fixed Deposit’ option.
Step 5: Select the FD account you want to close and click on the ‘Proceed’ tab.

Once you have followed the above steps, the bank will credit your FD investment amount to your linked savings/current bank account.

3. How to Close FD in SBI Offline

The following is a step-by-step guide for account holders who want to learn how to break FD in SBI offline.

Step 1: Visit the nearest branch of the State Bank of India.
Step 2: Obtain an FD premature withdrawal form from a bank representative.
Step 3: Fill out the form with necessary details such as fixed deposit number, bank account details and particulars of the account holders.
Step 4: Attach all the required documents with the form and submit it at the counter.

Once your FD account is closed, the bank representative will notify you. You will further receive your FD investment amount from your linked bank account.

What Happens to SBI FD Account After Maturity?

Now that you know how to break SBI FD online, here’s what can be done with such an investment after its closure.

After the maturity of your FD investment, you can choose to renew your investment for another year or the original tenure.
You can liquidate or encash your entire FD investment and transfer it to your linked savings/current bank account.
Most banks also allow depositors to encash just the principal amount invested in a fixed deposit and reinvest the interest income for the same predetermined tenure.

Things to Remember Before Closing FD Account

Let’s look at some things you need to know before opting for an FD account closure.

An FD account holder has to submit the certificate of deposit to the bank if he/she wants to close their SBI fixed deposit account.
A depositor has to provide a signed FD closure form along with a statement mentioning the reason behind its closure. In case an FD account is held jointly, the form should be signed by all account holders.
Upon closing an FD account, an individual has to specify whether he/she wants to reinvest or liquidate the fixed deposit investment.

Conclusion

This was a detailed guide on closing fixed deposits in SBI online. Generally, it is in your best interest not to withdraw/close your FD account before maturity since you will be liable to pay a penalty. The penalty charged for premature FD closure varies for different banks and financial institutions. Therefore, make sure to verify the amount and go through all the related terms and conditions carefully before closing an FD account.

FAQs

Does SBI charge any penalty for premature closure of FD?

Yes, the State Bank of India charges a penalty of 0.5% upon premature withdrawal/closure of a fixed deposit, amounting to ₹5 lakhs. However, a premature withdrawal of an FD of more than ₹5 lakhs attracts a penalty of 1%.

How to close Tax Saver FD in SBI?

A depositor cannot close a tax-saver FD in SBI before the completion of a lock-in period of 5 years under normal circumstances. In case of the depositor’s death, a legal heir or nominee of that FD can apply for its premature closure from their nearest branch.

Can an SBI FD be closed if it was opened online?

Yes, all depositors can close or break their FD accounts either online or offline, regardless of how it was opened.

Can I change my fixed deposit maturity instruction in SBI?

Yes, you can change your FD maturity instructions made with SBI online from its official website. By changing all maturity instructions, you can avoid a premature closure of your FD account.

How much do I receive after SBI FD closure?

After SBI FD closure, a depositor will receive the principal amount invested in an FD scheme along with interest income. To determine the total amount, you can use an FD calculator.

Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.