How to close a bank FD: Forms and documents to be submitted, interest rate

economictimes.indiatimes.com:

An FDs can be continued till its maturity or can even be redeemed or surrendered before the end of its original tenure (premature withdrawal).

Here is a look at how to close an FD (whether opened online or offline by visiting a bank branch), both on maturity and premature closure. The actual requirement may vary across banks, hence know them from the bank before proceeding with the closure.

Also read: Yes Bank premature withdrawal penalty on FDs hiked to up to 1%; Check details

Do to note that closing a five-year tax-saving FD before the end of the tenure is not allowed by any bank.

Closure of FD on maturity

Banks may have their own requirements but the primary requirement will be to surrender the deposit certificate after signing is done by all the holders. In addition, the individual may be asked to submit a signed form indicating that the FD may be closed on the maturity date. The maturity proceeds after the due date will then be transferred to the savings account of the individual. In the case of an online FD, the option to renew or close the FD on the maturity date can be done online. The maturity proceeds will then be credit to your savings bank account.

Further, unless the deposit holder acts, the bank has two ways to deal with the matured FD on the due date. Here's what they can do:

1. Auto-renew: On the due date, the bank may renew the FD automatically for one year or for the original term of the FD.
2. Auto liquidation: On the due date, the FD gets liquidated and the bank transfers the proceeds to the savings account.

Check the terms and conditions on the deposit certificate, receipt or the deposit advice to know what will be applicable in case of your deposit.

Premature closure of FD

An early closure of