How to Close Fixed Deposit in Bank Of Baroda?

How to Close Bank Of Baroda Fixed Deposit Account?: Bank Fixed Deposit or Term Deposit is a deposit scheme where you can invest money in lump sum for a fixed pre-decided tenure at a given rate of interest. Bank Of Baroda offers Fixed Deposit (FD) products of multiple tenures at competitive interest rates and with many other benefits like loan or overdraft facility against Fixed Deposit. It is usually seen that if someone opens a bank FD account, he/ she rarely closes it before maturity in order to achieve the financial objectives for which it was opened. Premature closure is not considered a good option as you bear financial loss if you close your FD before maturity.

However, still there could be multiple reasons to close a bank Fixed Deposit Account such as:

  • Emergencies in the family
  • Lower rate of interest
  • Customer Service is not upto the mark
  • Requirement of funds for purchase of some asset
  • Bad Relationship with Bank Staff
  • Better interest rate is being offered by other bank
  • Better opportunity for investment

In order to close your Fixed Deposit Account, you may be interested to know how to close bank Fixed Deposit Account? It seems tedious but it's very easy to get your account closed, you just need to follow a few steps for the same.

Alternate Ways instead of Closing Bank Fixed Deposit Account of Bank Of Baroda

  • A loan against fixed deposits can help you manage finances without breaking your investment.
  • Arrange the funds for emergency from your family, friends or relatives, if your FD maturity date is very close.
  • Avail Personal Loan, in case it is financially viable option.

How to close Bank Of Baroda Fixed Deposit Account?

If you have a Fixed Deposit Account with Bank Of Baroda and interested to know how to close it then following are the steps will have to follow:

(1) Fill up the FD Account Closure Form or Fixed Deposit Liquidation form of Bank Of Baroda

In order to close Bank Of Baroda FD account, the first step is to fill up an FD Account Closure Form. For this, you can visit your branch, get the FD account closure form and fill it up properly. After that you need to sign it and submit it to the branch manager/ officer-in-charge. Please note that if there is/ are any joint holder/s in your account, all need to sign the FD account closure form.

(2) Attach your KYC (Know Your Customer) Documents

All the holders of the account need to attach a copy of KYC documents i.e. a copy of PAN, which also serves as your proof of identity and a proof of address to the FD closure form. The account holders may also be asked to self attest these documents.

(3) Submit FD Certificate or FD Receipt

Whenever you apply for bank FD, the bank issues a deposit certificate or receipt as a proof of fixed deposit. It shows the details like FD amount, Tenure and Rate of Interest. You need to carry this certificate or receipt to close a fixed deposit. You need to submit FD certificate or receipt duly signed by all the account holders. The banker will verify the documents submitted by you and if he/ she finds all the things are correct then you are asked to withdraw the balance amount in your account. You may either take cash withdrawal or the bank issues a cheque/ DD in your favour or the amount can be transferred to another account.

If you follow above steps, you would be able to close your FD account in a hassle free manner. Banks generally send an email or SMS on your registered email id and mobile after your FD account is closed.

Important Points regarding Closing of Bank Of Baroda Fixed Deposit Account

  • For closing your FD account, you need to visit that branch of the bank where you had opened the account.
  • Some of the banks offer FDs with minimum lock-in period which means that if you withdraw your FD before the lock-in period, no interest will be paid.
  • On premature closure of Fixed Deposit, usually a penalty of 0.50% to 1% lower interest is levied. One will not get the original interest on FD amount for the entire tenure of the FD, but will be paid the lower interest rate less penalty for the period in which the FD was withdrawn.
  • Any type of tax-saver FD cannot be withdrawn prematurely i.e. you cannot withdraw the amount before a lock in period of 5 years.
  • Loan and Overdraft facility is not available against tax-saver FDs.

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