Posted on Thursday, May 11th, 2023 | By IndusInd Bank
The FD maturity process allows investors to renew the FD, withdraw the entire amount, or transfer it to another investment option. Invest in IndusInd Bank FD for a secure financial future!
Fixed Deposits FD have maintained their position as a popular investment option due to their flexibility and attractive returns. The interest rate is set at the time of booking and is not impacted by market fluctuations, allowing for confident investment planning. Moreover, fixed deposits offer the necessary liquidity in times of need. However, understanding the maturity process of FDs and knowing when and how to withdraw your funds can be tricky. This blog will help you by offering a thorough overview of the FD maturity process to ensure a smooth withdrawal of funds.
What is FD Maturity Period?
The FD maturity period is the time between the date of deposit and the date of maturity when the investment principal and interest earned are returned to the investor. It is predetermined and set when booking the FD, and it can vary from a few days to several years.
What Happens to An FD When It Matures?
Banks typically handle matured FDs in either of two ways.
- They automatically renew the FD for a period of one year OR the previous tenure, in accordance with the specific tenure set by the account holder
- Or, they automatically liquidate both the principal amount and interest earned on the FD and transfer these funds into the account holder’s designated account
When Can You Withdraw Your Funds?
You can withdraw your FD amount prematurely or upon maturity from your bank. The partial withdrawal before maturity is not allowed for tax saver/non-withdrawable fixed deposits. Tax saver FDs usually have a lock-in period of five years.
- Withdrawal Upon Maturity: When your FD matures, you can easily liquidate or withdraw the deposit by visiting the branch or online.
- Premature/ Partial Withdrawal: If you urgently need funds, you can withdraw your FD before maturity. Banks generally impose a penalty for withdrawing any FD prematurely or partially.
How Do You Withdraw Your Funds?
- Visit your bank and fill out a withdrawal form, or you can do it online if your bank offers that option
- After you have completed the form, the bank will typically process your request within a few business days
How To Close the FD Account on Maturity?
To close your FD account upon maturity, you must follow these steps:
- Visit your bank and provide the fixed deposit certificate, which all account holders must duly sign
- Provide instructions to the bank regarding the management of your funds. You may choose to close the FD, renew it, transfer the funds into a new FD or investment, or withdraw some of the funds while retaining the rest in the FD
- You may be asked to submit a letter detailing your preference and including all the necessary transaction details
You can invest in IndusInd Bank FD to grow your wealth securely over time. The bank offers competitive interest rates higher than the prevailing savings account interest rates. With flexible tenure options, you can choose the tenure that matches your financial objectives. Moreover, the convenience of online banking makes it easy to open and manage your FD account from the comfort of your home. As a well-established bank with a strong financial track record and reputation, IndusInd Bank provides a safe investment option.
Invest in IndusInd Bank FD account today for potentially higher returns on your savings!
Disclaimer:The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
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