As the money is locked in a specific period the deposits cannot be withdrawn at the will of the depositor, except in specific scenarios in which the depositor is ready to bear the penalty for premature withdrawal. There is no penalty charged in case of Death premature withdrawals (Death of the 1st Holder).
For premature closure, you need to submit the Original FDR with a revenue stamp and cross signature of all holders (rear/back of the FDR) (xerox copy in case of E-receipt) and a request letter specifying the reason along with personalised cheque leaf copy at the nearest office ( Mumbai – Head Office or Chennai Processing centre).
The pre-closure procedure will take 5-6 working days to process the payment after the receipt of the documents.
Penalty Chart for premature withdrawal.
The FDR cannot be pre-closed for 3 months from the date of deposit
Only principal amount will be repaid in case FDR is pre-closed between 3 months to 6 months from the date of deposit. No interest will be paid during this period, if Deposit is pre-closed between 3 months to 6 months.
If the Deposit is pre-closed after 6 months but before maturity, the interest rate payable shall be 2% lower than the interest applicable for the period for which the deposit has run or if no rate has been specified for that period, then 3% lower than the minimum rate at which the public deposits are accepted by the company.
Note: - Pre-closure penalty will be charged on the rate of interest of the tenure completed by the FDR and not on the rate of interest applied by the depositor, as the said ROI is applicable only if the FDR is retained till the date of maturity.
Example: - If the FDR has completed only 1 year, the base rate applied for calculating premature penalty will be 1 year’s ROI on the date of deposit.
Pre-mature withdrawals are not permitted for Non-cumulative FD’s 10 days within interest payment cycle & between 20th March to 31st March due to year end closing activities.