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How to renew or withdraw your Fixed Deposit?

How to renew or withdraw your Fixed Deposit?

How to renew or withdraw your Fixed Deposit?

The withdrawal and renewal of a Fixed Deposit (FD) are simple and can be done in a few steps with a few documents. The auto-renewal feature can make re-investing your deposit quick and easy. You can also withdraw or renew your FD online from the comfort of your home if you have a net-banking account.

fixed deposit is an attractive option for those looking for a low-risk, guaranteed returns investment scheme. While considering starting a new fixed deposit, you must ensure you know all the details. Renewals and withdrawals of fixed deposits are some of the features that are often overlooked.

When the maturity date for your FD is approaching, you may sometimes find it challenging to decide whether you should withdraw or renew it. Shriram Finance offers auto-renewal and auto refund options upon the maturity of your fixed deposit. To further understand what you should do, let’s look at all you need to know before withdrawing or renewing your fixed deposit.

What is a Fixed Deposit?

A fixed deposit is an investment scheme in which the money deposited earns a specific interest rate over time, decided by your bank or Non-Banking Financial Company (NBFC). You can get higher interest rates for an FD than for a regular savings account. 

When a fixed deposit matures, the account holder has two options - they can either withdraw or renew it. If you have multiple fixed deposit investments, it is essential to maintain a list along with maturity dates to ensure you have time to decide whether you want to renew or withdraw the final amount.

The Process of Renewing a Fixed Deposit

The renewal of a fixed deposit can be decided before or on the day of maturity. Banks and NBFCs like Shriram offer an auto-renewal service you can select while starting the FD. Auto-renewal of an FD is the service in which the deposit will get re-invested after maturity.

You will have an option to auto-renew your FD deposit when opening the deposit account. You can choose if you want to re-invest the whole deposit with interest on maturity or if you only want to invest the principal amount. This option will only be given if you have not already opted for auto-renewal. 

Based on your choice, the bank will start a new deposit account with the re-investment on maturity, or you will not have to worry about it if you have selected auto-renewal.

Steps to Renew a Fixed Deposit on Maturity

Step 1: Visit the bank or NBFC branch where you have opened the fixed deposit and submit the deposit certificate.

Step 2: Upon request, a form will be provided by the bank or NBFC stating that you want to renew the FD.

Step 3: The financial institution will renew your deposit to gather interest for the next cycle of the predetermined period.

Steps to Withdraw a Fixed Deposit on Maturity

Step 1: Visit the bank or NBFC where you have created the fixed deposit account and submit the deposit certificate.

Step 2: You will also be required to complete a form stating that the FD can be closed on maturity.

Step 3: The bank or NBFC will close your FD account and deposit the funds into your registered savings account.

If you want to do this process online, it is simple and easy and requires a few clicks. However, to manage your fixed deposit online, you must have an active net banking account with your bank or NBFC. You can easily apply for Shriram Finance Fixed Deposit online and secure your investments with higher interest rates and assured returns.

To proceed with the renewal of your current investment with Shriram Finance, please log in to our Customer portal.

What happens when you Close an FD Prematurely?

One crucial factor you have to consider while investing in a fixed deposit is that you will be charged a penalty if you need to withdraw the funds before maturity. In some cases, the penalty will cause the total amount to lose all interest earned, which will be a great loss to the account owner. To avoid any losses on the deposit, you can always go for options like non-cumulative fixed deposits or sweep-in FDs.

A non-cumulative FD allows you to choose a regular pay-out option. You can get the interest of the fixed deposit paid every month. With a sweep-in FD, you can remove funds from the deposit whenever you need without incurring any penalties.

But the process is quite easy if you already have a regular FD account and need to close it due to an emergency. Here are the steps you need to follow to withdraw the deposit prematurely:

Online FD Closure:

Step 1: Visit your bank or NBFC website and go to the section where you can access the FD details.

Step 2: Select close FD, and you will be given the option with a notification that certain charges will apply for early withdrawal.

Step 3:  Accept the notification, and you will receive the funds in the registered bank account once your bank or NBFC has processed your request.

Offline FD Closure:

Step 1: Visit the bank or NBFC branch and get a form for premature withdrawal.

Step 2:  Fill out the form with your personal and account details.

Step 3: Submit the documents required, and the bank or NBFC will process your request.

Step 4: Once the FD is closed, the funds will be credited to your savings account. 


You can close a fixed deposit if you need the funds for your personal needs. If you want to keep growing your investment, re-investing or renewing your FD is always a great idea. With Shriram Finance Fixed Deposit, you can let your hard-earned money grow to achieve your future goals efficiently.

Key Highlights:

  • Upon maturity, you can re-invest the entire amount with interest or only the principal amount.
  • You can easily withdraw an FD prematurely with only a few documents.
  • You can apply for auto-renewal of your FD while creating the account.
  • The online process to withdraw and renew your FD is straightforward.
Shriram completes 50 years of service!

To mark this momentous occasion, we have launched Shriram Jubilee Deposit - a 50-month investment scheme.
Invest now and earn up to 9.20%* p.a. (including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)

Book a Fixed Deposit & get attractive/ high returns