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Updated 08 Dec 2023
Fixed Deposits (FDs) have always been a choice for investments due to their reliability and predictable returns. Although the purpose of an FD is to let your money grow for a duration there may be instances where you need to terminate it before its maturity.
Whether it's a circumstance or a better financial opportunity it's important to understand the process of terminating your FD with Canara Bank. This article aims to provide you with a guide on how to do that.
Online Method
Step 1- Log in to your Canara Bank banking account.
Step 2- Go to the section dedicated to fixed deposits.
Step 3- Locate the option that refers to terminating or closing an FD.
Step 4- Select the FD you wish to terminate and follow the provided instructions.
Step 5- Review your selection. Confirm. The credited amount will be transferred directly into your linked bank account.
Offline Method
Step 1- Visit your Canara Bank branch.
Step 2- Request a premature withdrawal form, for your FD termination.
Step 3- Accurately fill in all required details in the form.
Once you have filled out the form. Completed any identity verification proceeds to Step 4; Submit the form along, with the required identity verification. After that, a bank executive will handle your request and credit the fixed deposit (FD) amount into your bank account.
Will there be any penalty if I decide to terminate my FD at Canara Bank?
Yes Canara Bank may impose a penalty of 1% on withdrawals except for FDs with a tenure of 7 14 days.
How long does it usually take for the FD amount to be credited after closing it?
Typically if you choose the method the amount will be credited immediately. However with the method it may take hours up to a day.
Can I prematurely close my Tax Saver FD?
No premature closure is not allowed for Tax Saver FDs unless in cases where the depositor passes away.
Is the interest earned on my FD subject, to taxation?
Yes if the interest accrued exceeds ₹40,000 (₹50,000 for citizens) in a year TDS (Tax Deducted at Source) will apply.
How is the interest calculated if I close my FD before its maturity?
If you decide to withdraw your deposit before the agreed term the interest you receive will be calculated based on whichever's lower; the base rate, at the time of opening the deposit or the base rate during the period it stayed with the bank.
Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.
