If you need to close your Fixed Deposit account prematurely, whether due to financial reasons or changing investment strategies, you can request an early closure. Below are the key points to consider when applying for the premature closure of your Fixed Deposit account, including the required documents and sample application letter formats for your convenience.
Key Points to Consider
Documents Required: When applying for the premature closure of a Fixed Deposit account, ensure you have the following documents:
- Application Letter: A formal request to the bank to close the FD account prematurely.
- Identity Proof: A copy of your valid identity proof (Aadhaar, PAN card, etc.).
- FD Certificate/Receipt: The original FD certificate or receipt issued by the bank.
- Bank Charges: Indian banks may charge a 1-2% penalty for premature closure of Fixed Deposits. The exact charges may vary from bank to bank, so it is advisable to check with your bank for specific details.
Steps to Apply for Premature Closure
- Visit the Bank: Go to the nearest branch of your bank with the necessary documents.
- Submit Documents: Hand in the application letter along with supporting documents, including the FD receipt.
- Verification Process: The bank will verify your identity and account details.
- Pay the Fee (If Any): Some banks may impose penalties or charges for early closure, and the penalty amount will be auto-debited from the withdrawal amount.
- Closure Process: Once processed, the bank will transfer the balance to your account after deducting any penalties.
1. Application for Closing a Fixed Deposit Account Prematurely Due to Financial Emergency
The Branch Manager,
[Bank Name],
[Branch Name],
[City, State, Pin Code]Date: [Insert Date]
Subject: Request for Premature Closure of Fixed Deposit Due to Financial Emergency
Respected Sir/Madam,
I, [Your Name], hold a Fixed Deposit account with your bank, Account Number [Your Account Number]. Due to an unexpected financial emergency, I am in urgent need of funds and request the premature closure of my Fixed Deposit account.
I understand that there may be penalties for the early closure, and I am willing to comply with all applicable charges. Kindly process this request at the earliest and transfer the proceeds to my linked savings account.
Thank you for your understanding.
Yours sincerely,
[Your Name]
[Your Contact Number]
[Your Address]
2. Application for Closing a Fixed Deposit Account Prematurely Due to Medical Expenses
The Branch Manager,
[Bank Name],
[Branch Name],
[City, State, Pin Code]Date: [Insert Date]
Subject: Request for Premature Closure of Fixed Deposit Due to Medical Expenses
Respected Sir/Madam,
I, [Your Name], have a Fixed Deposit account with your bank, Account Number [Your Account Number]. Unfortunately, due to unforeseen medical expenses, I require immediate access to my funds.
Hence, I am requesting the premature closure of my Fixed Deposit. I understand the penalties involved and agree to comply with the bank’s terms and conditions for early closure. Please transfer the proceeds to my linked savings account at the earliest.
I would be grateful for your prompt action in this matter.
Yours sincerely,
[Your Name]
[Your Contact Number]
[Your Address]
3. Application for Closing a Fixed Deposit Account Prematurely Due to Low Interest Rate
The Branch Manager,
[Bank Name],
[Branch Name],
[City, State, Pin Code]Date: [Insert Date]
Subject: Request for Premature Closure of Fixed Deposit Due to Low Interest Rate
Respected Sir/Madam,
I, [Your Name], hold a Fixed Deposit account with your bank, Account Number [Your Account Number]. The interest rate on my Fixed Deposit is no longer attractive in comparison to other available financial options.
Therefore, I request the premature closure of my Fixed Deposit account. I understand that penalties may apply, and I agree to bear the charges for early withdrawal. Please process this request at the earliest and transfer the funds to my linked savings account.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
[Your Contact Number]
[Your Address]
4. Application for Closing a Fixed Deposit Account Prematurely for Investment in Other Financial Options
The Branch Manager,
[Bank Name],
[Branch Name],
[City, State, Pin Code]Date: [Insert Date]
Subject: Request for Premature Closure of Fixed Deposit for Investment in Other Financial Options
Respected Sir/Madam,
I, [Your Name], hold a Fixed Deposit account with your bank, Account Number [Your Account Number]. I have come across a more promising investment opportunity, and I would like to prematurely close my Fixed Deposit account in order to reinvest the funds.
I am aware of the penalties and charges for early closure and agree to the same. Kindly process this request as soon as possible and transfer the proceeds to my linked savings account.
Thank you for your prompt assistance.
Yours sincerely,
[Your Name]
[Your Contact Number]
[Your Address]
5. Application for Closing a Fixed Deposit Account Prematurely Due to Personal Reasons
The Branch Manager,
[Bank Name],
[Branch Name],
[City, State, Pin Code]Date: [Insert Date]
Subject: Request for Premature Closure of Fixed Deposit Due to Personal Reasons
Respected Sir/Madam,
I, [Your Name], hold a Fixed Deposit account with your bank, Account Number [Your Account Number]. Due to personal reasons, I would like to request the premature closure of my Fixed Deposit account.
I am aware of the penalties and charges for early withdrawal, and I agree to bear them. Kindly process my request and transfer the funds to my linked savings account.
Thank you for your assistance.
Yours sincerely,
[Your Name]
[Your Contact Number]
[Your Address]
In times of financial need or changing investment strategies, it is essential to have access to your funds. The provided templates serve as a guideline for formally requesting the premature closure of a fixed deposit account.
Always ensure to clearly state your reasons and express your willingness to comply with any penalties or charges involved. Prompt and clear communication with your bank can facilitate a smoother process.
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[MBA in Finance]
Nazim Khan is an expert in Microsoft Excel. He teaches people how to use it better. He has been doing this for more than ten years. He is running this website (TechGuruPlus.com) and a YouTube channel called "Business Excel" since 2016. He shares useful tips from his own experiences to help others improve their Excel skills and careers.
