As the process of creating a fixed deposit is made simpler through the online route likewise premature breaking of the fixed deposit is also possible online. However, at present the facility is provided by all of the banks. Thus, for the deposits with other banks, customers need to take the offline route i.e. visit the bank with the FD receipt or deposit certificate and complete the necessary documentation process for the processing of the request for early breaking of the term deposit with the bank.
Steps to break the FD online
In both private and public sector banks the process is much simpler with turn around time of just a few hours. For applying for early breaking of the fixed deposit scheme, all a customer needs to do is log-in into one's account using internet banking credentials and click on the Service Request link. The link would provide multiple options pertaining to different queries, among which you can select the one related to term deposits or fixed deposits. Further under this link, you'll see different available options such as know your FD status, request for early withdrawal or breaking of fixed deposit.
On clicking the link, the customer would be asked to specify his FD account number, contact number in addition to e-mail address. After the process is completed from the customer's end, bank upon verification of the details and accounting for the necessary charges and penalty amount would at the most process the request by the next working day. The principal amount plus interest less deductions on account of early withdrawal would then be credited into the customer's account.
Is there extra amount that is cut?
No, there is no extra amount that would be deducted if the FD is broken online. In fact, it would save you precious money to break the deposit online without visiting the branch of the bank. This is an easy and the most convenient way of breaking the deposit.
What about tax liability
Of course, if there is a TDS that has been deducted you would get the FD proceeds without the TDS. In this case you would need to contact the branch and also get a TDS certificate. This would help you clain tax refund just in case.
Contact the nearest branch
In case of difficulty, it is best to contact the local branch for details. Otherwise, through the online route for premature FD breaking i.e. indeed available with several new-age banks. So, in case you as a customer are intending to break your existing investment into a fixed deposit scheme prematurely than you can consider the available online route which would save time as well as reduce efforts considerably.Also remember there is a prepayment penalty in case the FD is broken before a select period. Do remember to check the same with your bank.