Guide to Withdrawing Money from a Fixed Deposit After Maturity

Invest Now In FD

Book your FD in 4 simple steps

Learning how to withdraw money from a fixed deposit after maturity is easy, as you can complete the process online or offline. Read on to learn more about these processes and their nuances.

How to Withdraw Money from a Fixed Deposit?

Initiating the withdrawal process online via Internet banking is an easy process. Follow these simple steps to learn how to withdraw money from an FD after maturity online.

Step 1: Log on to your account using your credentials and navigate to the fixed deposit tab
Step 2: Look for the ‘Withdrawal’ option, and click on it

Step 3: Select the fixed deposit details and follow the process to withdraw the funds

Note that in case of premature withdrawal, the financial institution may charge up to a 0.5% to 1.00% interest rate as a penalty for the same.

Once you place a request to withdraw a fixed deposit - either via net banking or by visiting an issuer’s branch, you will receive the deposit amount. However, If you break the FD within 7 days of investing in it, the bank will not pay you any interest.

FD Withdrawal on Maturity

Liquidating your FD is a simple process. While online FD withdrawal is one option, another way is to visit the issuer’s branch. Here are the steps for FD withdrawal offline-

Visit a branch of the issuer where you have the FD account
Submit the deposit certificate to confirm that you wish to withdraw the fixed deposit on maturity

Fill out a withdrawal application and sign the same
Once verified, you will receive the principal amount and accumulated interest to your savings account

Ensure you fill in the correct savings account details in your withdrawal application.

In case, you do not give any instructions to the issuer on what they need to do after the maturity of your FD. One of the following actions on your behalf will be taken:

Auto-Renewal

The issuer could automatically renew the deposit for a year or for the same tenor as the original deposit with the same terms and conditions.

Auto Liquidation

The fixed deposit could get liquidated on the due date, and the proceeds - the principal amount and the accumulated interest - would be transferred to your savings account.

In some cases, there may also be special provisions or terms listed by the issuer. These would be listed on the deposit certificate or any other documents provided to you.

Conclusion

Learning how to withdraw a fixed deposit after maturity is easy, and most issuers have digital provisions to support the same. On Bajaj Markets, you can easily book an FD online from multiple partners and maximise your earnings.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

Can banks auto-renew unclaimed fixed deposits?

Yes, banks could auto-renew unclaimed FDs if the account holder takes no action following its maturity.

How do I renew my fixed deposit?

You can renew your deposit by opting for the auto-renewal option before the maturity of your fixed deposit.

At times, issuers also give you the option to reinvest the principal amount alone or renew both principal and interest accrued. You can renew your fixed deposit until 7 days before its maturity date.

What happens if a fixed deposit is unclaimed?

In instances where your deposit is unclaimed, the issuer may choose to transfer the money to the account holder's savings account or may choose to renew the money either for a year or for the same tenor of the original FD.

Why should I renew my FD?

Renewing your FD is a viable choice if you have no immediate need for the funds or have other plans to invest. Keeping the funds in a savings account attracts lower interest rates, which is why it could be better to renew the fixed deposit.

Can I withdraw FD on the maturity date?

Yes, you can withdraw your FD at maturity via the online or offline modes. Submit the withdrawal form and the proceeds will be credited to your savings bank account.

Can FD be withdrawn immediately?

Yes, you can withdraw your fixed deposit prematurely. However, most issuers levy a premature withdrawal charge for this facility. Remember that you cannot withdraw tax-saver FDs due to their mandatory lock-in duration.

How do I transfer money from an FD to a savings account?

You can transfer your fixed deposit to your savings account by liquidating your FD prematurely or at maturity. You can do so online through mobile banking or net banking or visit your nearest bank branch and submit your request for withdrawal.