Can We Close Tax Saver FD Before Maturity?

What if I close my FD before maturity?

Withdrawing an FD before maturity is known as breaking an FD.

When you break the FD, you get a lower rate of interest and also pay a penalty for the premature withdrawal.

Say, you opened a 1 year FD at 7.5%.

If you decide to break an FD at 10 months, the interest earned on the FD will reduce by 1%..

Can I break my tax saver FD?

The FD can be placed with a minimum amount which varies from bank to bank. 3. These deposits have a lock-in period of 5 years. Premature withdrawals and loan against these FDs are not allowed.

Can I close SBI FD before maturity?

You can close an FD before maturity and after maturity. 1) Log-in to SBI net banking by providing personal details. 2) From fixed deposit option, click on e-TDR/e-STDR (FD). … 3) Click on ‘close account prematurely’ option.

What is the penalty for breaking fixed deposit?

If the depositor wants to make premature withdrawal of his FD from SBI before the completion of its tenure, the depositor has to pay a penalty of 0.05 per cent across all tenures, for any amount below 5 lakh. If you have deposited Rs 3 lakh with the bank as a fixed deposit, you will be charged Rs 1,500 as a penalty.

How can I close my fixed deposit?

Steps to Close an FD Offline by Visiting Branch (Premature)Step 1: Visit the bank branch and get a form for premature withdrawal.Step 2: Fill the form with necessary details such as name, bank account details, and FD number among others.Step 3: Submit the document with the bank and they will process your request.More items…