How to Close FD in SBI Online & Offline? A Detailed Guide

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Updated on Feb 21, 2024

Want to break or close FD in SBI? You can now do it online or offline in an easy step-by-step process. Read below how to close FD in SBI through online and offline method.

Fixed deposit, popularly addressed as FD by the common Indian populace, is one of the safest investment options in the country. A lot of people in India who do not wish to take a large amount of risk with their hard-earned money prefer to deposit their savings in FDs. It is for this reason that a number of banks and financial institutions in India allow their customers to easily open an FD account. The SBI FD account facility for the customers of State Bank of India (SBI) is one such example.

The SBI, like most other banks, allows its customers to open FD accounts for risk-free safe investments. SBI fixed deposit accounts are both easy to open as well as close upon maturity (if the account holder so wishes to). Sometimes the customers may wish to close their account before maturity due to some reason. The SBI allows them to do so as well and the FD account closure can be initiated both online and offline.

Here we share the exact process on how to close FD in SBI via online and offline methods. Read on to know the step-by-step procedure.

What is a Fixed Deposit (FD) Account?

As is given in the name, a Fixed Deposit refers to an account that allows for investment for a fixed duration of time. The returns on the investment are also fixed at a specific rate of interest.

What are the Features of SBI Fixed Deposit?

The SBI allows opening of FD accounts for its customers with the following features:

  • Customers are allowed to deposit any amount of money with no upper capping limit.
  • The interest on the returns is payable either every quarter or on a monthly basis.
  • The deposit can be made for a minimum of 7 days up to a maximum of 10 years.
  • The customer needs to deposit a minimum amount of Rs. 1,000 for opening the SBI FD account.
  • The bank also allows for the nomination feature to its customers.

How to Break FD in SBI – Easy Steps to Close Fixed Deposit (FD) in SBI Online?

Just like opening the FD account with SBI is hassle-free, so is closing or breaking the FD with the bank. You can do the process online in your own convenient time and upon closure, the amount from the FD account payable to you will be credited to your account.

Here’s how to break fd in sbi online:

  • Step 1: Go to the official website of SBI (www.sbi.co.in).
  • Step 2: Click on the Fixed Deposit tab on the screen.
  • Step 3: You will see another tab under the FD tab, called ETDR/STDR (FD). Click on it.
  • Step 4: Now you will come across an option that says, “Close A/C Prematurely”. Click on it. A list will appear.
  • Step 5: The list in this section will show the FDs in your SBI account.
  • Step 6: From this list, you can select the particular SBI FD that you wish to close. Click on Proceed.
  • Step 7: You would be required to verify your FD account details like the date of maturity, amount deposited, and the like. This is done to ensure that you close the correct FD account among all those prevalent.
  • Step 8: In the Remarks section, you can state the reason for closure of the account and then hit on Confirm.
  • Step 9: Keep an eye out for an OTP (One-Time Password) on your registered mobile number. This is sent by the bank as part of the confirmation process.
  • Step 10: Enter the OTP and then click on Confirm.
  • Step 11: Once you click confirm, you will receive a confirmation message from SBI stating that your SBI FD account has been successfully closed.
  • Step 12: Upon closure of your FD account online, the amount in your account will be credited to your chosen bank account.

How to Break FD in SBI – Easy Steps to Close Fixed Deposit (FD) in SBI Offline?

We learned above how to close SBI fixed deposit online. If you wish to close your account manually by visiting an SBI branch, you can break your FD account with the bank offline too.

Here’s the simple process to close your SBI FD account offline:

  • Step 1: Visit a branch of SBI near you and request for FD account closure.
  • Step 2: You will be asked by the bank authorities to fill out a form for withdrawing FD prematurely.
  • Step 3: Fill in all the required details such as your name, bank account number, SBI FD account number, and the like.
  • Step 4: Submit the signed form at the branch.
  • Step 5: Once received, the bank will initiate processing of the request for premature withdrawal of FD amount.
  • Step 6: Your SBI FD account will be closed down once the request is processed successfully by the bank.
  • Step 7: Your deposited amount in the account will be credited to your bank savings account.

How To Close SBI FD Online Through Mobile Banking 

Here are the steps to close SBI FD online before maturity through mobile banking:

  • Step 1 – Open the SBI portal and go to the ‘SBI net banking’ tab at https://retail.onlinesbi.sbi/retail/login.htm
  • Step 2 – Go to the ‘Continue to Login’ tab
  • Step 3 – Use your credential – Username and Password – to enter the account. Also, complete the ‘Captcha’ option in the next field
  • Step 4 – Next, go to the tab of ‘Fixed Deposit’ on your mobile or navigate through the button on your desktop
  • Step 5 – In the step that follows click on either of the e-TDR or e-STDR Fixed Deposit options and click on the ‘Proceed’ button
  • Step 6 – Choose the option of ‘Close Account Prematurely” from the list of FD account options shown on the next page
  • Step 7 – You will be redirected to a page. Select the FD account that you want to close. Now click on the ‘Submit’ button
  • Step 8 – You will have to specify the reason for closing the FD account. Once done, click on the “Confirm” button.
    • Here you can avail the facility of opening an OD or Overdraft account against the chosen FD account you want to close.
    • Further, you may note that once the FD account is closed, you cannot activate it again.

Step 9 – Now, you may verify the security codes and close the FD of SBI. You will receive a security password on your mobile number. Enter the number and click on the ‘Confirm’ button

At last, you will see a message on the screen stating that your FD account has been closed permanently and the proceeds of the account will be credited to the savings bank account that is linked to the FD.

Things to Know Before You Close 0r Break FD in SBI

The FD rates offered by SBI or the State Bank of India are available at a reasonable rate of interest. The bank further offers the flexibility in terms of tenure of the plan, which can be anything between 7 days to 10 years.  Thus, the SBI FD account holder has the choice to close the account before or after the FD maturity.

Here are the things to know:

  • For closure of a SBI FD after maturity, the account holder has to submit the certificate of deposit at the SBI bank
  • The person must also present a signed form mentioning that they want the FD to be closed on the date of maturity
  • Once these documents are submitted, the FD amount along with the earned interest are transferred to the savings account of the depositor upon policy maturity
  • The SBI bank also allow the facility to renew or close FD on maturity through online procedure

When it comes to closing a FD account in SBI bank, it can be done either online or offline. To close it offline you can simply visit the SBI branch close to you and submit the FD certificate to start the procedure. In case of joint accounts, both the account holders must sign the document jointly.

Also, as mentioned above the depositor must submit the form of FD account closure mentioning all details such as Fixed Deposit account number, details of savings account and so on.

In case of online procedure, the account holder might log in to their internet banking to close the SBI FD online. By opting for the auto liquidation option, the account holder can get the total FD amount credited to their bank upon policy maturity.

What Happens to the SBI FD Account Upon Maturity?

In case your FD account with the SBI has matured to its complete term and you do not withdraw the amount at your own will, here’s what the bank can do with your account:

  • The bank will liquidate your account on the due date, transferring your entire amount to the savings account linked to the FD account.
  • The bank will renew your FD account automatically for another 1 year or for the original duration of the FD earlier on the due date of maturity.
  • The bank will reinvest the interest earned on your SBI FD account for the original term chosen by you. The principal amount that remains will be credited to your linked savings account.

Read More: 1 Crore FD Interest Per Month

Wrapping Up

It is generally not advisable to withdraw the FD amount from your bank account prematurely. In some cases, the same may even attract a penalty for the customer from the concerned bank. When in doubt whether or not SBI follows these guidelines, you can check the SBI FD premature withdrawal penalty calculator online. It would tell you the exact amount of penalty that you may need to bear in the event of premature withdrawal from SBI FD account.

However, if you absolutely need to, you can break your FD account either online or offline by following the simple processes mentioned in this blog.

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Is there any penalty charges for premature closure of SBI FD?

Yes. SBI usually charges a certain penalty amount for withdrawing the SBI FD account before the maturity due date.

Can you close an FD online if it was opened offline?

In general, the FD may not appear in your net banking account if it was not opened online. Even if the FD was not opened online, it may still be possible with some banks to close it online. You can ask customer service to assist you with the online closure, though.

Can I break my tax-saver FDs, which comes with a lock-in period of 5 years?

No, tax-saver FDs cannot be withdrawn prematurely.

How to change maturity instruction in SBI FD online?

If you have a SBI FD account and you want to change the maturity instructions in that account, you can do so online by logging into your account. Now, select the option of ‘Fixed Deposit’. You can see the option of ‘type of deposit account’ followed by ‘Modify Maturity Instruction’.

Now, select the FD that you want to modify the maturity instructions. Choose the correct option and select the ‘Confirm’ tab. It will change the maturity instruction on your chosen FD account.

Is it necessary to have a savings account in order to open an SBI FD account?

Yes, it is important to have a savings account if you wish to create a SBI FD account. In fact, you can easily do so online by logging in to your net banking and applying to open an FD account.

What amount is received after FD maturity?

Depending on the amount deposited, the account holder will receive a sum that includes the total principal amount as well as the total interest amount that is deposited on your FD at maturity.

You can use a FD calculator to evaluate the maturity amount by submitting the details like amount to be invested, interest rate, and the period of investment.

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Oct 21, 2022
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