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|---|---|---|---|---|
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| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
A fixed deposit is a financial tool that allows individuals to deposit a lump sum amount of money for a set period at a predefined interest rate. This interest rate is often higher than that provided by traditional savings accounts.
At maturity, the principal amount and accumulated interest are returned to the investor. They can also choose to receive periodic interest payments from their deposits, such as monthly or quarterly.
These deposits can last from a few months to several years, depending on the individual’s needs and the institution’s options. During the deposit period, the interest rate is fixed regardless of market fluctuations, giving investors a sense of security.
Under the fixed deposit, your money is blocked for a predetermined period. However, if you require funds immediately, you may choose premature withdrawal of fixed deposits.
Premature/partial withdrawal from a fixed deposit
You may withdraw your fixed deposit early in case of an emergency. If you break the deposit prematurely, the bank will charge you a penalty. Premature fixed deposit withdrawals are classified into two types: partial or complete.
You can request a premature closure of a fixed deposit either online or offline. Navigate to the Fixed Deposits tab in your NetBanking account and request an early withdrawal. You can also make a withdrawal request in person at your nearest branch. Following this, the cash will be transferred to the linked account.
However, most banks do not allow partial withdrawals of fixed deposits through NetBanking.
How to withdraw money from an FD after maturity
When your fixed deposit matures, you can withdraw the entire amount or create a new fixed deposit. If you want to liquidate or withdraw your deposit at maturity, you can do it online or offline.
Online method:
Step 1: Log in to your online banking with your credentials.
Step 2: Go to the section for fixed deposits.
Step 3: Locate the option entitled ‘withdraw FD’ or anything similar.
Step 4: Choose the fixed deposit from which you wish to withdraw money.
Step 5: Follow the instructions to finish the withdrawal process.
By following these steps, you can conveniently withdraw funds directly into your savings or current account with a few clicks.
Offline method:
Step 1: Go to the branch of the bank where you have your fixed deposit account.
Step 2: Submit your fixed deposit certificate to certify that you intend to withdraw the money at maturity.
Step 3: Fill out and sign the withdrawal form (FD maturity application).
Step 4: Once verified, the principal and accumulated interest will be transferred to your savings account.