application letter for closing rd account after maturity

Fixed Deposit Closure Application Letter to Bank Manager (with Samples & PDFs)

I have listed sample templates to help you craft an effective and professional fixed deposit closure application letter to bank manager.

Also, I would like to point out that you can also download a PDF containing all the samples at the end of this post.

Fixed Deposit Liquidation Application to Bank Manager

First, find the sample template for fixed deposit closure application letter to bank manager below.

To, The Branch Manager, [Bank Name], [Branch Address], [City Name], [Postal Code]

Subject: Request for Closure of Fixed Deposit Account

Dear Sir/Madam,

I am writing this letter to bring to your attention that I wish to close my Fixed Deposit account with your esteemed bank. My Fixed Deposit account number is [Fixed Deposit Account Number].

The reasons for this closure are strictly personal and in no way reflect any dissatisfaction with the bank’s services. I have always appreciated the quality of service provided by [Bank Name], and it has been a pleasant banking experience for me so far.

I request you to kindly process my application at the earliest and arrange for the funds along with the accrued interest to be transferred to my savings account with the same bank. My savings account number is [Savings Account Number].

I understand that there may be some penalties or charges due to the premature closure, and I am ready to bear those, as per the bank’s policy.

Please let me know of any formalities or documents that I need to provide to facilitate the closure process. I am ready to visit the bank in person if required.

Thank you for your prompt attention to this matter. I apologize for any inconvenience this may cause to the bank.

Yours sincerely,

[Your Name] [Your Address] [City Name, Postal Code] [Phone Number] [Email Address]

Date: [Date of Writing]

Below I have listed 5 different sample applications for “fixed deposit closure application letter to bank manager” that you will certainly find useful for specific scenarios:

Application for Fixed Deposit Early Withdrawal Due to Financial Hardship

To, The Branch Manager, [Bank Name], [Branch Name], [Branch Address],

Subject: Application for Fixed Deposit Early Withdrawal Due to Financial Hardship

I, [Your Name], holding a Fixed Deposit account (A/C No: [Account Number]) with your esteemed bank, humbly request an early withdrawal of my fixed deposit due to unforeseen financial hardships.

The recent challenges, including the loss of my job and unexpected medical expenses, have caused a severe strain on my finances. In such a situation, I am left with no option but to withdraw my fixed deposit prematurely to manage my expenses and fulfill my financial obligations.

I understand that early withdrawal of fixed deposit will result in a reduced interest rate and may be subject to penalties as per the bank’s policy. However, under these circumstances, I kindly request you to consider waiving or reducing any penalties, if possible, to alleviate my financial burden.

I would appreciate your prompt assistance in processing the early withdrawal of my fixed deposit. Kindly let me know the necessary documentation and procedures to complete the process.

Thank you for understanding my situation, and I look forward to your favorable response.

Yours faithfully, [Your Name] [Mobile Number] [Email ID] [Address]

Application for Fixed Deposit Closure for Investment Opportunities

To, The Branch Manager, [Bank Name], [Branch Address],

Subject: Application for Fixed Deposit Closure for Investment Opportunities

Respected Sir/Madam,

I, [Your Name], holding a Fixed Deposit (FD) account with your esteemed bank, kindly request the closure of my Fixed Deposit account bearing number [FD Account Number]. The Fixed Deposit was initiated on [Date of FD Start] and is due to mature on [Date of FD Maturity].

I have decided to close the FD account prematurely due to some lucrative investment opportunities that I have recently come across. I believe that investing in these opportunities will yield better returns in the long run. I understand that closing the FD account before its maturity date may result in a reduced interest rate and a penalty, as per the bank’s terms and conditions.

Please find the original Fixed Deposit Receipt enclosed with this application. I kindly request you to close the FD account at the earliest and transfer the maturity amount (principal + accrued interest) to my savings account number [Savings Account Number] with your branch.

I would also like to apologize for any inconvenience this request may cause to the bank. I assure you that I have thoroughly evaluated the alternative investment options and made this decision after careful consideration. I appreciate your understanding and prompt assistance in this matter.

Thanking you.

Yours faithfully,

[Your Name] [Your Address] [Your Contact Number] [Date]

Application to Revoke Fixed Deposit Auto-renewal and Request Closure

To, The Branch Manager, [Bank Name], [Bank Branch], [City],

Subject: Application to Revoke Fixed Deposit Auto-renewal and Request Closure

I, [Your Name], am holding a Fixed Deposit (FD) account (FD Account No. [FD Account Number]) with your esteemed bank since [FD start date]. The fixed deposit is set to auto-renew on maturity, and the current maturity date is [Maturity Date]. However, due to my current financial requirements, I wish to revoke the auto-renewal option and request the closure of my fixed deposit account upon its maturity.

Kindly process my request and deposit the matured amount (including the interest earned) into my savings account (Account No. [Savings Account Number]) on the date of maturity. I would appreciate it if you could provide me with a written confirmation of the same at your earliest convenience.

Please let me know if any additional information or documentation is required to proceed with the request. I am enclosing a photocopy of my fixed deposit receipt for your reference.

Thanking you in advance for your assistance.

[Your Name] [Address] [Contact Number] [Email ID]

Application for Fixed Deposit Account Termination After Maturity Date

Subject: Application for Fixed Deposit Account Termination After Maturity Date

I, [Your Name], holder of Savings Account number [Account Number], had opened a Fixed Deposit Account bearing number [FD Account Number] on [Date of Opening] in your esteemed bank. The maturity date of the Fixed Deposit was [Maturity Date]. I now wish to terminate this Fixed Deposit Account post its maturity.

I kindly request you to close the said Fixed Deposit Account and transfer the maturity amount, along with any interest accrued, to my Savings Account number [Account Number]. I have attached a photocopy of my passbook, Fixed Deposit receipt, and a cancelled cheque for your reference.

Your prompt action in this matter would be highly appreciated. Kindly acknowledge the termination of my Fixed Deposit Account and inform me once the transfer of funds has been completed.

Thanking you in anticipation.

[Your Name] [Your Address] [City, Postal Code] [Phone Number] [Email Address]

Date: [Date of Application]

Application to Consolidate Multiple Fixed Deposits and Close Accounts

Subject: Application to Consolidate Multiple Fixed Deposits and Close Accounts

I, [Your Name], maintain multiple fixed deposit accounts at your esteemed bank. I would like to request the consolidation of these fixed deposits and the closure of the respective accounts.

The details of my fixed deposit accounts are as follows:

1. Account Number: [FD Account No. 1] Amount: [Amount 1] Date of Maturity: [Maturity Date 1]

2. Account Number: [FD Account No. 2] Amount: [Amount 2] Date of Maturity: [Maturity Date 2]

3. Account Number: [FD Account No. 3] Amount: [Amount 3] Date of Maturity: [Maturity Date 3]

Please consolidate the above fixed deposits and credit the total amount to my savings account (Account Number: [Savings Account Number]) upon the maturity of each fixed deposit. Subsequently, I request the closure of the above-mentioned fixed deposit accounts.

I am enclosing copies of my fixed deposit certificates as required. Kindly acknowledge this application and carry out the requested actions at the earliest. Please inform me when the consolidation and closure process is completed.

Thank you for your prompt attention to this matter.

[Your Name] [Your Address] [City, State, Postal Code] [Contact Number] [Email Address]

Date: [Date of Submission]

How to Write Fixed Deposit Closure Application Letter to Bank Manager

Some writing tips to help you craft a better application:

• Begin with your name, address, and contact details.
• Include the date of writing the letter.
• Add the bank manager’s name, bank name, and branch address.
• Choose an appropriate subject line such as “Request for Fixed Deposit Closure.”
• Start the letter with a formal salutation, like “Dear Sir/Madam.”
• Introduce yourself and mention your fixed deposit account number.
• Explain the reason for closing the fixed deposit account.
• Specify the maturity date of the fixed deposit.
• Request a prompt closure of the account and the balance to be transferred to your savings account or disbursed via check.
• If required, attach relevant documents for proof and reference.
• Provide your savings account details for the transfer.
• Thank the bank manager for their assistance and cooperation.
• Close the letter with a formal sign-off, like “Yours sincerely,” followed by your name and signature.

Related Topics:

• Application for Current Account Closure
• Loan Close Application
• SBI Account Closure Application

View all topics →

I am sure you will get some insights from here on how to write “fixed deposit closure application letter to bank manager”. And to help further, you can also download all the above application samples as PDFs by clicking here .

And if you have any related queries, kindly feel free to let me know in the comments below.

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A quick guide to Recurring Deposit (RD) premature closure or withdrawal

3 min read Mar 11, 2024

While it is generally recommended to let the RD mature for the intended period to maximize its benefits, unforeseen emergencies may necessitate an early withdrawal.

RD premature closure is when you wish to withdraw your money from a Recurring Deposit (RD) account before its actual maturity date. While it is generally recommended to let the RD mature for the intended period to maximize its benefits, unforeseen emergencies may necessitate an early withdrawal.

Rules for premature RD amount withdrawal

Different banks and financial institutions may have slightly varying policies regarding a Recurring Deposit's premature withdrawal. However, some general rules apply:

• Most banks allow only one premature withdrawal before the RD account matures. Only 100% withdrawal is permitted in case of RDs.
• The minimum tenure for booking an RD with Axis Bank is 6 months. In case of premature withdrawal, restrictions on minimum tenure is not applied.

Conditions of premature withdrawal of RD

You could choose a premature withdrawal due to reasons like having a financial emergency, getting a better investment opportunity elsewhere, or a change in the initial purpose for opening that RD. Here are the conditions you need to note during the Recurring Deposit's premature withdrawal:

1) Partial RD withdrawal Most institutions do not allow partial RD withdrawal.

2) Penalty You might wonder 'Can we break a Recurring Deposit before its maturity date without facing significant penalties?' The penalty for breaking RD before maturity varies depending on the institution. Most banks and financial institutions levy a penalty for premature withdrawal of RD, ranging from 0.5% to 1%, depending on the period remaining until maturity.

3) Lost interest rate Premature withdrawal also entails a loss of interest amount. The interest that you get will be lower than the originally mentioned rate, as it is calculated for the period during which the deposit remains active.

What documents are required to withdraw money from the RD Account before maturity?

The required documents for premature RD withdrawal can vary between institutions. However, some common documents typically include:

• Original RD account passbook and a duly filled withdrawal form
• Photo ID proof like a PAN card or Aadhaar card
• Any other documents as mandated by your specific bank or institution

Should I make a premature withdrawal on my RD?

The decision to prematurely withdraw your RD depends on your individual circumstances and financial goals. You need to weigh the potential benefits against the costs:

• Benefits: You can access your funds for immediate needs, be it funding an emergency or to get potentially higher returns elsewhere.
• Costs: Some consequences that you may face when prematurely closing an RD account are penalty charges, lost interest income and potential disruption to your financial planning.

It's important that you carefully assess your situation and consider alternatives like borrowing against your RD (if available), meaning seeking a loan or an overdraft, before prematurely closing your account.

It is recommended to keep premature closure of RD as your last resort. You can plan your finances to avoid such situations with Axis Bank's Recurring Deposits and build your savings with minimum monthly instalments of ₹500. You can earn interest on your RD for 6 months to 10 years.

1. Can I withdraw the entire amount as part of a premature withdrawal? Yes, since only complete withdrawal is permitted, you can withdraw the entire deposited amount prematurely. However, you will be subject to the applicable penalty and lose out on the contracted RD interest rate.

2. Will the bank levy a penalty for premature RD closure or withdrawal? Most banks and financial institutions do levy a penalty for premature closure of RD or withdrawal. The penalty amount varies depending on the institution and the remaining period until maturity.

3. Is it mandatory to keep the account operational for a particular number of years before premature withdrawal? Some institutions might have a minimum tenure requirement before allowing the premature closure of RD. Even if you're willing to accept the lower interest rate, you cannot withdraw the funds before the specified period.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.

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Can We Break RD Before Maturity?

Investing in a Recurring Deposit (RD) is a favoured investment choice in India. This investment avenue presents the advantage of depositing a fixed sum of money at regular intervals, ensuring a consistent income stream. Although RD is considered a reliable and secure investment option, you may be required to break your RD before the maturity date.

The question arises: Can we break RD before maturity? Let’s explore this matter further to gain clarity.

Can I Withdraw Money from My RD Account Before Maturity?

Unlike a savings account, you cannot withdraw the deposited amount in your RD account anytime you wish to. It is usually possible to break a recurring deposit (RD) before its maturity, but it may incur penalties or a reduction in the interest earned.

Recurring deposits allow premature withdrawal, but there are some rules and conditions that you need to keep in mind before you make an early withdrawal.

Rules for premature RD amount withdrawal

A premature withdrawal of the amount in your RD account is not recommended, but sometimes you might just have to give in and withdraw with no other options left. Therefore, there are some rules about this withdrawal. They are as follows:

• Most banks only accept one withdrawal before your RD account matures. Moreover, this premature withdrawal RD amount should be a maximum of 50% of the deposit in the account .
• Premature withdrawal is only allowed if your RD account has been operational for one year and you have made at least 12 monthly deposits .
• You need to repay the premature withdrawal funds in either a series or lump sum .
• The withdrawal amount should only be in the multiples of ₹5 .
• If you don’t repay the prematurely withdrawn amount before your RD account reaches maturity, the bank or financial institution will deduct it with interest after it matures.
• Depending on the bank, they may or may not charge an interest rate on the prematurely withdrawn RD amount.

Conditions of Premature Withdrawal of RD

The premature closure of RD is allowed in most banks and financial institutions, followed by some rules. Again, there are some conditions for early withdrawal depending from bank to bank. Let’s look at some of the most common conditions:

Partial RD Withdrawal

Depending on the financial institution, some of them have the facility to partially withdraw from your RD account before it reaches its maturity date. Some banks may even allow for a partial money withdrawal from RD before maturity only after making certain deposits; some may allow partial premature withdrawals after a specific period.

You may have to incur a penalty for withdrawing from your RD account before its maturity period. The penalty amount will differ from bank to bank and the type of RD scheme you choose. Also, the penalty may be charged on the amount accumulated, or sometimes it’s charged on the interest earned.

Lost Interest Rate

You earn a decided interest rate on the earnings you deposit in your RD account for a fixed time. But when you break RD before maturity, you may lose the interest rate you would earn on your selected RD scheme.

Learn more- What is a Recurring Deposit? How Does an RD Work?

What Documents Are Required to Withdraw Money from RD Account Before Maturity?

Before you go ahead to withdraw money from your RD account before maturity, there are some documents you should have handy. These include:

• Address proof
• Receipt of your RD account

Depending on the bank and the RD scheme, the documents required to break RD before maturity will differ.

Should I Make a Premature Withdrawal on My RD?

The decision to break or close an RD prematurely depends on your circumstances. Breaking or closing an RD should be considered as a last resort when all other options have been exhausted. It is advisable to explore alternative methods of arranging funds if they are available to you. However, if you have no other choice but to make a premature withdrawal, it is crucial to ensure timely repayment. Failure to do so may result in the RD not delivering the intended benefits it was designed for.

To get accurate information about the terms and conditions regarding early withdrawals from a recurring deposit, it is advisable to directly contact your bank or financial institution. They will be able to provide you with the specific details and guide you through the withdrawal process.

Can I withdraw RD anytime?

There’s a set maturity period in which your entire RD scheme will exist. If you withdraw money from your RD account before maturity, you may lose the interest rate earned on it and might also need to pay penalties for early withdrawal.

Can I withdraw the entire amount as part of a premature withdrawal?

No. As per the rules, the maximum amount for premature withdrawal of RD is 50% of the deposited amount in your account.

Is it mandatory to keep the account operational for a particular number of years before premature withdrawal?

Yes, you need to make monthly deposits to your RD account for at least 12 months before making a premature withdrawal.

Will the bank levy a penalty for premature RD closure or withdrawal?

If you are looking to close your RD account prematurely or want to withdraw money from your RD account before maturity, you will incur some penalties either on the deposited amount or the interest rate.

Can I repay the withdrawn amount?

Yes, you need to repay the prematurely withdrawn RD amount before your RD account hits the maturity period.

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What Happens to RD After Maturity?

This article explores the various options available to investors after the maturity of a recurring deposit (RD), including reinvestment, donation, and transfers to savings.

A Recurring Deposit (RD) is a popular investment option for individuals looking to save money over a fixed period. It is a form of fixed deposit wherein individuals deposit a fixed sum of money each month for a fixed period. 

The maturity of an RD refers to the end of the fixed deposit period. After the maturity of an RD, the investor has various options available to them. This article will explore what happens to an RD after maturity.

Table of Contents

 Renewal of RD

One of the most common options available to investors after the maturity of an RD is to renew the RD. Renewal of an RD allows an investor to continue investing in the same RD scheme with the same terms and conditions. 

Investors can choose to renew their RD for the same duration or for a different duration, depending on their investment goals. Renewal of RD is a hassle-free process, and investors can choose to renew their RD online or by visiting their bank branch.

Closure of RD

Another option available to investors after the maturity of an RD is to close the RD. Closing an RD refers to withdrawing the entire amount invested in the RD along with interest earned. 

Investors can close their RD online or by visiting their bank branch. In most cases, banks do not charge any penalty for premature withdrawal of RD after maturity. However, checking with your bank regarding the penalty charges for premature withdrawal is important.

Extension of RD

Some banks offer the option of extending the maturity period of an RD. Investors can choose to extend the maturity period of their RD for a fixed period by submitting a written request to their bank. 

The interest rate offered on the extended RD may differ from that offered on the original RD. Investors can choose to extend their RD for the same or different duration depending on their investment goals.

Auto-Renewal of RD

Most banks offer the option of auto-renewal of RD. Auto-renewal of RD refers to the automatic renewal of the RD on the date of maturity for the same duration as the original RD. This option is convenient for investors who wish to continue investing in the same RD scheme without the hassle of renewing the RD manually. 

However, investors must ensure that they have sufficient funds in their savings account on the date of maturity to facilitate the automatic renewal of RD.

Conversion to Fixed Deposit

Some banks offer the option of converting an RD into a fixed deposit (FD) after maturity. This option is beneficial for investors who wish to continue investing in a fixed deposit scheme instead of an RD scheme. The interest rate offered on the FD may differ from that offered on the RD.

Partial Withdrawal of RD

Some banks offer the option of partial withdrawal of RD after maturity. Investors can choose to withdraw some of their investment while leaving the rest to continue earning interest. The interest rate offered on the remaining investment may differ from the original RD’s.

Transfer to Savings Account

After the maturity of an RD, investors can choose to transfer the entire amount, including the interest earned, to their savings account. This option is suitable for investors who need immediate access to their funds or who want to use the money for other purposes. 

However, it is important to note that the interest earned on an RD is usually higher than that earned on a savings account.

Reinvest Interest Earnings

Another option available to investors after the maturity of an RD is to reinvest the interest earnings in the same RD or a different investment option. This option can help investors maximize their returns by earning interest on the interest earned during the RD’s tenure. Some banks also offer the option of reinvesting the interest earnings automatically.

Open a New RD

Investors can also open a new RD with the maturity amount and interest earned. This option is suitable for investors who want to continue saving money over a fixed period and earn a guaranteed return on their investment. Investors can choose the duration and interest rate of the new RD based on their investment goals.

Donate the Maturity Amount

Investors can choose to donate the maturity amount of their RD to a charity or a non-profit organization. This option can help investors contribute to a good cause and positively impact society. Some banks also offer the option of donating a part of the maturity amount to a charity or non-profit organization.

After the maturity of an RD, investors have several options available to them, including transferring the maturity amount to a savings account, reinvesting the interest earnings, opening a new RD, donating the maturity amount, and investing in a different investment option. 

It is important to consider the pros and cons of each option and choose the one that aligns with your investment goals and financial situation. Investors should also consult their financial advisor or bank representative to make an informed decision.

Vakilsearch is a company that provides legal and financial services to individuals and businesses. Vakilsearch offers an RD calculator, which enables investors to determine the returns on their RD investments. The calculator considers the investment amount, tenure, and interest rate, providing an estimated return on investment at the end of the investment period.

Also, Read:

• Gratuity Payment Rules
• About SIP Investment
• How Does SIP Calculator Works?

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Application for Closing Bank Account – Format

Do you hold a bank account that is either inactive or that you are unable to keep up with? It’s not complicated to close your account; all you need to do is write the manager a request letter. For your convenience and comprehension, we are providing the format for the application for Closing Bank Account.

SPOKEN ENGLISH EBOOK FREE

Why should I Close a Bank Account?

Different people may have different motives for closing a bank account. The most frequent causes include inadequate service or response, excessive fees, use of online services, etc. Other reasons can be that you can’t keep up with the account or need the money, or just want to open a new account.

Another situation can be that the bank may shut your account if it has been dormant for a very long time, if it has had zero balance for an extended length of time if there have been too many bounced checks or overdrafts, or if identity theft has occurred, etc.

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What Documents will you Require to Close a Bank Account?

To terminate a bank account, you must provide certain items to the bank that are highly significant. For instance,

• Account Number in a bank.
• Name of the account holder.
• The account holder’s signature.
• Original bank account passbook.
• Paycheck Book (If Issue).
• An ATM Card (If Issue).
• Identify Evidence (Ex. Aadhar Card, Pan Card, Voter ID Card, Driving License).
• The Address Is (Ex. Aadhar Card, Voter ID Card)

With the aforementioned items in hand, you should be able to shut your bank account without incident if you visit your local branch of the bank. You could have to pay it, though, as many banks may impose “account closing costs.”

Format of a Letter in order to Close a Bank Account

You must submit a letter to the bank manager each time you want to open or close a bank account outlining your motives. Here are some sample letters to assist you.

Format of an Account Closing Letter

The Branch Manager

Name of the Bank

Bank Address

Sir/ Ma’am,

Body of the letter

Thanking you

Yours faithfully,

Signature of the Account Holder

Name of the Account Holder

• Account Holder’s Name: [Your Full Name]
• Account Number: [Your Account Number]
• Account Type: [Savings/Current/Other]

I would like to request a written confirmation of the account closure once the process is completed. Kindly provide me with an official statement stating that the account has been closed, along with a zero balance verification. Should you require any further information or documentation from my end to expedite the account closure process, please do not hesitate to contact me via the contact details provided below.

Thank you for your attention to this matter. I look forward to your prompt action and the closure of my bank account. I appreciate your cooperation throughout this process.

Yours Sincerely.

Sample 2: Simple Bank Account Close Application Letter

To The Manager Name of the Bank Name of the Branch Address of the Branch

Sub: Application to close bank account

Dear Sir/Madam,

My bank’s savings account number is XXXXXXX. I’m now unable to keep this account going. Therefore, I respectfully ask that you terminate the account and credit the money to my cash or debit card.

Thanking you,

Sample 3 – Bank Account Close Application

To The Bank Manager, Bank Name, Branch Name, City.

Subject: Closing of Bank Account-A/C-XXXXXXX

Respected Sir/Madam,

With due respect, I Beg to say that I hold a savings account in your branch and I want to close this account due to some personal reasons with immediate effect. Details of the account are as under –

• Account Holder Name –
• Account No – XXXXXXXX
• IFSC code – XXXXXX
• Current Balance – Rs. XXXXX.XX

Kindly close my above-mentioned account and hand over the balance amount in cash. I will be thankful to you.

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Sample 4 – Bank Account Close Application Letter

To The Manager, Bank Name, Branch Name, (Full postal address of the branch) Date-

Subject- Closing of Savings / Current Bank Account

I humbly request that I have been an account holder with ______ (Account Holder Name) in your bank for some years. For some reason, I want to close my bank account. My account number is _____ (Bank Account Number) and my ATM number is ____ (ATM Number).

Therefore, you are requested to kindly close my account and return my outstanding amount to me. I will always be grateful to you. Your kind co-operation in this regard will be highly appreciated.

Thanking you.

Yours truly, Name- Address – Mobile No- Email ID-

Sample 5 – Application For Closing Bank Account

To The Branch Manager, Name of the Branch, Address of the Branch (example: Bigoram, Kolkata, 700386)

Subject: Request for pre-closing ongoing recurring deposit (RD) account

My savings account no. is XXXXXXXXXX and RD account no. is XXXXXXXXXX in your bank. Due to some unavoidable reasons, I’m not able to continue the RD payment.

So you are requested kindly to pre-close the RD account before the maturity period and deposit the so far amount from RD to my savings account.

Yours sincerely, Signature – Name – Mobile No –

FAQs on Application For Closing Bank Account Letter

Question 1 – Is it required to write a letter to close a bank account?

Answer: Writing a letter to the manager and asking him to permanently shut your account is a simple and safe method.

Question 2 – How long is the time frame for closing a bank account?

Answer: It entirely depends on your bank, to be honest. You can ask the bank manager to finish this task as quickly as feasible. But it only takes five to 10 days at most.

Question 3: Can a bank account be closed online?

Answer: Either yes, no, or both are acceptable answers to this question. Due to the fact that some banks in India allow you to close your bank account online while others do not.

Bank account closure is much simpler than you would imagine. You can attempt to develop your own application using the aforementioned examples as a guide.

Shibani Ghosh

Pouring out my thoughts through words!

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Search letters formats here, letter to bank for closing fixed deposit fd before/after maturity.

submit your comments here

Thank you very much for the format.

Was helpful in writing my letter.

What if we just wanted to withdraw some amount after maturity of FD and then want to reinvest the remaining amount as fd

Then, at first, you will have to submit a request to mature the FD in full and after receipt of the maturity amount, you can keep whatever amount you want to keep out of it and open a new FD for the rest of the amount with the bank. Options to mature an existing FD and open a new FD are available both through online medium and at branch office.

Is it possible if nominee can request for FD withdrawal as the account holder is being hospitalized and money is required for same.

Generally, only after death of the FD holder, withdrawal is possible by the nominee by providing necessary documents. But if the FD holder is alive and hospitalised, you can get the FD withdrawal/maturity form signed from that person in the hospital and submit it to the bank. Some banks have made available the form online too. Please call at the customer care executive number of the bank or email them to know the exact process. If the FD was created online, you can use the netbanking website to mature the FD. An OTP might be sent in online withdrawal case.

Thank you Ramesh :)

If the fixed deposit is in joint name what to do for encashment of it prematurely?

Both holders' signatures will be required in application form. Please visit bank's branch office. They might have printed application form for you to fill up and submit.

Can I claim fd amount after 10 years ? And how

Yes, you may. But, please contact the bank for accurate procedure for this.

Post a Comment

Leave your comments and queries here. We will try to get back to you.

e-RD Frequently Asked Questions

1. can i open a recurring deposit (rd) account through internet banking .

Yes, if you have Internet banking username and password, and at least one transaction account mapped to the username.

2. What is the minimum tenure for an online deposit ?

The period of deposit shall be minimum 12 months and maximum 120 months.

3. What are the interest rates for a recurring deposit ?

The interest rates vary from time to time. You can view the latest interest rates by clicking on "View current interest rate" link provided in e-RD request page.

4. What is the minimum amount for a recurring deposit a/c ?

The minimum amount of monthly installment shall be Rs 100. The amount of installment and number of installment can not be changed after opening of the account.

5. In whose name will the Recurring deposit (RD) account be opened? What is the mode of operation ?

The name(s) and mode of operation and branch of newly generated deposit a/c will be same as in debit a/c, from which RD a/c is funded.

6. How is the maturity amount calculated? Can I make enquiry before opening e-RD ?

The maturity amount is based on the installment, tenure & type of a/c selected by the customer. The maturity value of RD is rounded off to the nearest rupee and paid after 30 days /one month deposit of last installment or on the expiry of the period, for which the deposit was accepted, whichever is later. You may enquire the maturity amount, maturity date and rate of interest, without opening e-RD through "Enquiry" tab available in e-RD page.

7. What are the types of accounts from which I can debit an amount for the deposit ?

You can debit a savings, current, or OD account to open RD account. The account selected for debiting should be valid transactional a/c through Internet Banking channel and should not be a stopped / dormant / locked account.

8. Can I open online term deposit a/c for any other name(s), not belonging to debit a/c from which recurring deposit a/c is funded ?

No, You may contact the branch for the same.

9. Can I transfer the maturity money to any of my accounts ?

No, maturity amount or the amount payable before maturity will be transferred only to the debit account from which the first was funded.

10. Is there any cut off time for creating e-RD online ?

Yes. e-RD can be created online from 8:00 AM IST to 8:00 PM IST. Requests initiated beyond this period will be scheduled for the next opening hours.

11. How can I cancel my standing instruction for e-RD ?

You may cancel your standing instructions, which are set through Internet Banking, by "View/Cancel" tab, under e-Services -> Standing instruction link

12. Is it mandatory to set standing instructions for periodic instalment payment of RD ?

No, you can pay the instalment at your branch or you can also set the standing instruction at branch or through Internet banking anytime. Only your first instalment is paid online at the time of opening of RD a/c.

13. Can I close my RD account online ?

Yes, you may close your RD a/c online through "Close A/c" tab under e-RD, which are created through e-RD only. RD a/c created through any other means cannot be closed through "Close a/c" tab under e-RD.

14. What are the charges for RD pre-mature closure ?

Interest paid on premature withdrawal of recurring deposit shall be 1% below the rate applicable for the period deposit remained with the bank or 1% below the contracted rate whichever is lower., 15. what is the penalty for default in instalment payment , 16. what are the maturity instructions applicable to e-rd .

You can choose "Payback Principal and Interest" or "Convert to STDR" as maturity instruction for your e-RD. "Payback Principal and Interest" option will transfer the maturity proceeds to your debit account on maturity of e-RD. "Convert to STDR" option will create fixed deposit for period selected by you with the maturity amount of e-RD.

17. How TDS will be calculated for e-RD ?

Interest earned in RD A/c is subject to TDS

18. If I open a joint account, who will be liable for Income Tax

Income Tax provisions will be applicable to the first applicant

19. Can I submit nomination for single person (or) for multiple persons

Nomination is available in favour of individual person only and the nomination shall be made in favour of only one individual., 20. i do not have pan number. can i submit any other document in lieu of pan.

You may submit Form 60/61 as applicable in lieu of PAN with your home branch

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Are there any charges applicable on preclosure of rd.

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Closing the RD prior to maturity will result in a 1% penalty on the withdrawal amount.

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Home » Letters » Bank Letters » Premature Fixed Deposit Withdrawal Application – Fixed Deposit Closure Letter Before Maturity

Premature Fixed Deposit Withdrawal Application – Fixed Deposit Closure Letter Before Maturity

Table of Contents:

• Sample Letter

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How to use live assistant, additional template options, download options, share via email, share via whatsapp, copy to clipboard, print letter, letter for premature closure of fixed deposit account.

To, The Branch Manager, ______ (Bank Name) ______ (Branch) ______ ( Branch Address)

Date: __/__/____ (DD/MM/YYYY)

Subject Premature Closure of Fixed Deposit No. _______ (Fixed Deposit Number)

l am holding a Fixed Deposit A/C No. ____ (FD Number) in the name of ____ (Name). My fixed deposit no. ________ which is due for maturity on ______ (date of maturity). I need this money for _______ (personal) reasons.

Kindly close the FD before maturity and credit the amount in my _______ (type of account) account No. ____ (Account Number). I hereby enclosing FD Receipt/ FD Bond / FD Advice and KYC document /Customer request form (if applicable) with the application for fixed deposit closure.

Thanking You,

Signature: ________ Name: ________ Contact: ________

• FD Receipt/ FD Advice
• KYC Documents (if applicable)
• Customer Request Form (if applicable)

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The Live Assistant feature is represented by a real-time preview functionality. Here’s how to use it:

• Start Typing: Enter your letter content in the "Letter Input" textarea.
• Live Preview: As you type, the content of your letter will be displayed in the "Live Preview" section below the textarea. This feature converts newline characters in the textarea into <br> tags in HTML for better readability.

The letter writing editor allows you to start with predefined templates for drafting your letters:

• Choose a Template: Click one of the template buttons ("Start with Sample Template 1", "Start with Sample Template 2", or "Start with Sample Template 3").
• Auto-Fill Textarea: The chosen template's content will automatically fill the textarea, which you can then modify or use as is.

Click the "Download Letter" button after composing your letter. This triggers a download of a file containing the content of your letter.

Click the "Share via Email" button after composing your letter. Your default email client will open a new message window with the subject "Sharing My Draft Letter" and the content of your letter in the body.

Click the "Share via WhatsApp" button after you've composed your letter. Your default browser will open a new tab prompting you to send the letter as a message to a contact on WhatsApp.

If you want to copy the text of your letter to the clipboard:

• Copy to Clipboard: Click the "Copy to Clipboard" button after composing your letter.
• Paste Anywhere: You can then paste the copied text anywhere you need, such as into another application or document.

For printing the letter directly from the browser:

• Print Letter: Click the "Print Letter" button after composing your letter.
• Print Preview: A new browser window will open showing your letter formatted for printing.
• Print: Use the print dialog in the browser to complete printing.
• Yes, it's possible to request premature closure of a fixed deposit for urgent financial needs or other valid reasons.
• Enclose documents such as the FD Receipt/Bond/Advice and KYC documents along with a customer request form if applicable to support your request.
• Address the recipient as "The Branch Manager" or "Dear Sir/Madam" if you're unsure of their name.
• Yes, include the subject "Premature Closure of Fixed Deposit No. [Fixed Deposit Number]" to clearly indicate the purpose of the letter.
• Clearly state your fixed deposit account number, the reason for premature closure, and provide details of the account where you want the funds to be transferred.

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By lettersdadmin

Related post, loan application letter | sample application letter to bank manager for loan, complaint letter to bank for amount deduction as processing charge – sample complaint letter regarding unexplained deduction from bank account, letter to bank for non-payment of loan – sample explanation letter for delay in loan payment, leave a reply cancel reply.

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