ICICI Bank, one of India’s largest private banks, offers attractive interest rates on their fixed deposit (FD) schemes. While FDs remain a preferred investment option among many Indians to date, there may be occasions when investors wish to withdraw their FD investment for certain financial emergencies. If you have an FD account in ICICI Bank and wish to close the account, you’ve come to the right place. In this blog, we’ll explore the details of how to close FD in ICICI Bank online and offline procedures.
How to Close FD in ICICI?
In this section, we will check the details of how to close FD in ICICI Bank:
First, let us understand how to break ICICI FD online:
- Step 1: Log in to your ICICI net banking account with your details. Click on the ‘My Account’ section and then navigate to the ‘Deposits’ section.
- Step 2: Click on ‘Service Requests’ and then the ‘Request For’ button. Choose ‘Premature Withdrawal of FD’ and then click on the ‘Continue’ button.
- Step 3: Check whether the details of the fixed deposit scheme (FD account number, amount, savings account details) are accurate or not. Then, verify and confirm your particulars.
- Step 4: Provide your debit card number to approve the FD withdrawal. An OTP will be sent to your registered mobile phone number. Type in the OTP and then click on the ‘Continue’ button.
- Step 5: Once OTP verification is complete, you’ll get a confirmation of closure or withdrawal of your FD account on your mail and phone.
The bank will transfer the FD amount to your linked savings account. Remember that you cannot cancel the request once you have already made one.
2. ICICI App
Here are the steps you need to follow to close your ICICI FD account through the bank’s mobile app ICICI iMobile application:
- Step 1: Log in to your ICICI iMobile app with your credentials. Navigate to the ‘Accounts and Deposits’ section, choose and click on ‘Deposits’.
- Step 2: Enter your FD account number and select ‘More Options’.
- Step 3: Click on the ‘Close FD’ tab.
After you go through the steps, the bank will close your FD account and transfer the entire investment automatically to your linked savings account.
Many investors, especially senior citizens, may not be comfortable with online procedures. They can close their ICICI FD account through offline methods as well:
- Step 1: Visit your nearest ICICI Bank branch. Make sure you carry one identity proof.
- Step 2: The officials at the bank will provide you with an FD closure/withdrawal form. Make sure you fill out the form correctly.
- Step 3: Submit the form.
After verifying your details, a bank official will close your FD account and transfer the FD amount to your savings account.
Closing an ICICI FD on Maturity
Generally, banks use any one of the following options to deal with FD schemes after they mature.
Under the auto-liquidation option, the bank will encash the FD investment and transfer the entire amount to the savings bank account that the depositor had linked at the time of initiating the FD.
FD auto-renewal is a common step where an FD account is renewed for the same tenure at prevalent FD rates. Generally, auto-renewal occurs when depositors have not provided any instruction regarding what is to be done with the money.
3. Reinvestment Interest
When depositors choose this option, the interest they receive from an FD investment gets reinvested for the period predetermined on the date of maturity. The depositor will receive the remaining principal amount in his/her linked savings account.
Things to Remember Before Closing FD Account
Now that you know how to close an FD account in ICICI Bank, you should consider certain points before initiating its process.
- ICICI Bank will charge a penalty of 1% on premature withdrawal/closure of FD accounts.
- In case you have invested in a tax-saving FD account, ICICI Bank will not allow full or partial withdrawal of funds before the completion of 5 years.
- When a depositor closes an FD account prematurely, the person will lose out on the potential compound interest they would have earned had they not discontinued the scheme.
Many people in India still prefer fixed deposit schemes to other investment options as they consider them to be safe and reliable. Fixed deposits also involve a simple account opening/closure process, making it an attractive choice.
Most banks allow depositors to withdraw their FD investment before or after maturity in case of a financial emergency. Under such circumstances, having an idea of how to close FD in ICICI Bank online or offline will be of great help.