How to Close HDFC Fixed Deposit Online?

Do you want to learn how to close your HDFC Fixed Deposit (FD) online? It’s crucial for customers who want convenience to know what to expect during the process and what to watch out for. While fixed deposits are intended for long-term savings, there may be situations where early closure is necessary. But how easy is it to close an online FD once it’s opened?

If you’re looking for information on how to break FD in HDFC, you’ll be pleased to know that HDFC Bank customers can close a fixed deposit online, saving them the trip to the branch. However, since there may be penalties for early withdrawal, many people might find the process unclear or feel hesitant to proceed. Let’s explore the available options, the steps to take, and some critical points to remember when closing an FD online.

In order to learn how to close your HDFC Fixed Deposit online, you must first understand the steps that make up this simple process.

Steps to Close HDFC Fixed Deposit Online

Using HDFC Bank’s NetBanking portal, you can quickly close an HDFC Fixed Deposit (FD) online by following these simple instructions. Here is a reliable guide for how to break FD in HDFC:

1. Log In to HDFC NetBanking

Go to the HDFC Bank’s NetBanking portal. Use your customer ID and password to access your account securely.

2. Go to the Fixed Deposit section

After logging in, locate the Fixed Deposit section in the menu, usually under the Accounts tab.

3. Click on Liquidate Fixed Deposit

Under the Fixed Deposit menu, click the Liquidate Fixed Deposit option. This initiates the closure process.

Also Read: HDFC Bonds: Low-Risk Investments with Fixed Returns

4. Select the FD account to close

Choose the FD account number you wish to close from the list of active deposits.

5. Review the details and proceed

Carefully review all the relevant information regarding the FD, such as the maturity date, interest earned, and other details. After verifying the details, click Continue to proceed.

6. Final Verification

The last step is to acknowledge your action. Upon successful confirmation, the proceeds from your FD, including the principal and interest, will be credited to your linked savings account.

This quick and easy process allows HDFC customers to manage FD closures without visiting a branch.

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After learning how to close an HDFC Fixed Deposit online, let’s discuss what happens if you close your FD before it matures.

Premature Closure of HDFC Fixed Deposit

For premature closure, follow these steps to close an HDFC FD online, even if you want to do so before it matures:

1. Log in to HDFC NetBanking using your login credentials.
2. From the menu on the left, select the Fixed Deposit tab.
3. Choose Liquidate Fixed Deposit from the list of options.
4. From the drop-down menu, select the FD account you wish to close.
5. After reviewing the details, confirm your selection.

Also Read: Calculating Fixed Deposit Interest Online Using FD Calculator

Once verified, the principal and accrued interest (adjusted for early closure penalties) will be credited to your linked savings account.

Please note that if the FD was opened in a branch, it must be closed by visiting the branch and submitting a request for early withdrawal. Be aware that early termination of the FD may result in a lower interest rate, and penalties may apply depending on the duration of the deposit.

HDFC Bank provides a handy mobile banking option for closing your FD in addition to online banking. Let’s look at some ways you can use this feature to get more customization.

Closure via HDFC Mobile App

Follow these steps to close your HDFC FD online through the HDFC Mobile Banking app:

1. Log in to the HDFC Mobile Banking app using your login credentials.
2. Navigate through the app’s menu to the Fixed Deposit section.
3. Select the FD account you wish to cancel.
4. Choose Close Fixed Deposit or Liquidate.
5. Review the details and confirm the closure.

Also Read: Closing Cosmos Bank Fixed Deposit Online

The funds from the closed FD will be credited to your associated savings or current account. Remember that a 1% penalty will be applied to the applicable interest rate if you make a premature withdrawal.

The next thing to consider is how soon you can access your funds after your FD has been successfully closed. Here’s what you need to know about getting your money back after closure.

Receiving Funds After Closure

If you’re looking forward to how to break FD in HDFC and what happens next, knowing how soon you can access your money after closing the FD online is essential. Upon successfully closing your HDFC Fixed Deposit (FD), HDFC Bank credits the principal amount and interest (less any penalties for early withdrawal) directly to your linked savings account. This transaction typically occurs immediately after the closure request is processed, ensuring your funds are available immediately. That being said, a few variables could affect this instant transfer:

• Banking Hours

If the request is submitted on a weekend or outside of regular business hours, it might take effect the following business day.

• Technical Issues

The transfer may be delayed by sporadic network outages or other technical difficulties. In such circumstances, customers are urged to inquire about updates from HDFC customer service.

Also Read: IDFC First Bank Fixed Deposit Interest Rates 2024

Even though money is usually credited immediately following an online FD closure, it is wise to double-check the transfer to your associated savings account and be aware of any circumstances that could cause it to take longer than expected.

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If you have a joint fixed deposit account, you may be curious about the closure procedure. Let’s examine the smooth closure process that joint account holders can follow.

Joint Account FD Closure

The process of how to break FD in HDFC for a joint account is similar to closing a standard FD. However, there are specific considerations for joint accounts that need attention. Here’s how it works:

1. Open HDFC NetBanking and Log In

The primary or joint account holder with the required NetBanking credentials must access HDFC Bank’s NetBanking portal using their customer ID and password.

2. Go to the Fixed Deposit Section

On the Fixed Deposit menu, which is usually located under the Accounts tab, select the “Liquidate Fixed Deposit” option.

3. Choose the Joint FD Account

A list of all active FDs, including joint accounts, will be displayed. Choose the joint FD account you want to terminate.

4. Examine the Account Information

Review crucial information such as the principal amount, interest accrued, and any possible penalties for early withdrawal.

5. Permit the Closure

Depending on how the account operates, the bank may require the approval of each account holder for joint FDs (e.g., “Either Jointly” or “Either or Survivor”). Either account holder may close the FD if it is subject to an “Either or Survivor” mandate. In contrast, both account holders must consent to the closure under Joint mandates.

6. Transfer of Funds and Confirmation

After completing the review, click “Continue” to approve the liquidation. The associated savings account will receive the funds, including the principal and interest.

Also Read: SBI Annuity Deposit Scheme

Joint FD Closures: Important Things to Think About

• The mandate established at account opening determines the mode of operation, which includes the ability to close a joint FD. For instance, “Either or Survivor” accounts allow either holder to act independently, while Joint accounts require both holders’ consent.

• A penalty will be imposed for premature withdrawal, which will be evident throughout the liquidation process if the FD is closed before maturity.

• Following closure, confirmation will be sent to both account holders by email or SMS.

Conclusion

Breaking FD in HDFC is a straightforward process, allowing you to instantly access your money. This is especially beneficial for those who need funds urgently without the hassle of visiting a branch. You can close your FD using the HDFC mobile app or the online banking portal. Once the request is submitted, the proceeds are typically credited directly to your linked savings or current account, ensuring a quick and hassle-free experience with no paperwork.

However, remember that if you break your FD in HDFC before maturity, there’s a 1% penalty on the interest rate, meaning you will earn slightly less than the initially agreed amount. Additionally, tax-saving FDs come with a mandatory lock-in period, during which early closure is not allowed.

HDFC Bank has made it simple for customers to close their fixed deposit accounts online, giving them more control over their money and quick access. While this convenience is valuable, it also opens up opportunities to explore more dynamic investment options. Now that you have the flexibility to manage your funds efficiently, it’s an ideal time to consider alternative fixed-income options with potentially more attractive rates.

At Tap Invest, we offer a range of high-yield investment opportunities beyond conventional FDs, such as P2P Investments, Asset Leasing, and more. This platform is for you if you’re looking for better ways to grow your savings and earn higher returns. Create an account with Tap Invest and start growing your wealth today!

FAQs

1. Can I close an HDFC Fixed Deposit online if it’s linked to a joint account?

Yes, either account holder may close the FD online if you have a joint account with an “Either or Survivor” mandate. However, if both account holders must agree (e.g., a jointly operated account), you might need to visit a branch to close it, as the online option may not support joint operations involving multiple authorizations.

2. After I close the FD, will the money be automatically credited to my account?

Your savings account will sometimes, but only sometimes, receive money from a closed fixed deposit. The amount may take some time to appear in your account, even though HDFC Bank works hard to process these transactions quickly. The transfer should be completed on the same working day.

3. What happens if I close my FD online outside of banking hours?

An FD closure request made online after business hours will be processed the following business day. Once processed, the funds will be credited to your associated savings or current account. While the closure transaction can be requested at any time, HDFC’s operational schedules determine when it is actually processed.

4. Will there be any penalties if I close my FD online before it matures?

Yes, you can use NetBanking or the HDFC Mobile App to close your HDFC FD online before it matures. Premature withdrawal, also referred to as early closure of an FD, will likely result in penalties. Typically, HDFC reduces the interest rate by 1% from the rate applicable for the period the deposit was held. Before proceeding, always review the penalty guidelines specific to your FD tenure.