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.

A fixed deposit is an attractive option for those looking for a relatively stable investment scheme. While considering starting a new fixed deposit, you must ensure you know all the details.

When the maturity date for your FD is approaching, you may sometimes find it challenging to decide whether you should withdraw or renew it. 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 financial institution.

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. Financial institutions offer an auto-renewal service you can select at the time of booking the FD. In this case, the deposit will be renewed automatically after maturity.

You will have an option to auto-renew your FD deposit at the time of booking the FD or 7 days before the maturity date. You can choose if you want to reinvest the whole deposit with interest on maturity or if you only want to invest the principal amount.

Based on your choice, the financial institution will renew the FD, or you don't have to worry about it if you have selected auto-renewal.

Steps to Renew a Fixed Deposit on Maturity

Step 1: Visit the website and log in to your account or visit the branch where you opened the fixed deposit and submit the deposit certificate to renew your FD.

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

Step 3: The financial institution will renew your deposit to earn interest for the predetermined period.

Many financial institutions also auto-renew your FD if you provide such instructions at the time of booking the FD online.

Steps to Withdraw a Fixed Deposit on Maturity

Step 1: Visit the website and log in to your account or visit the branch where you booked the fixed deposit and submit the deposit certificate to renew your FD. This has to be done 7 days prior to the maturity date or should be chosen during the booking of the FD.

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

Step 3: Your FD will be closed and the funds will be transferred into your registered bank account.

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. To avoid any losses on the deposit, you can always go for options like non-cumulative fixed deposits for regular income.

A non-cumulative FD allows you to choose a regular payout option. You can get the interest of the fixed deposit paid every month.

But the process is quite easy if you already have a regular FD 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 financial institution's website and go to the section where you can access your FD details.

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

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

Offline FD Closure:

Step 1: Visit the branch and complete the form for premature withdrawal.

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

Step 3: Submit the documents required, and the financial institution will process your request.

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

Conclusion:

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 Fixed Deposit, you can let your hard-earned money grow to achieve your future goals efficiently.

Key Highlights:

• Upon maturity, you can reinvest the entire amount with interest or only the principal amount.
• Premature withdrawal may be permitted; however, penalties apply.
• You can apply for auto-renewal of your FD during the time of booking the FD.
• Online options for withdrawal or renewal may be available depending on the institution’s digital services.

Disclaimer

With regards to deposit taking activity of Shriram Finance Limited (‘SFL’), viewers may refer to detailed information and T&C provided in our application form available at https://www.shriramfinance.in/downloads. The Company is having a valid Certificate of Registration dated 31st January 2023 issued by the Bank under section 45-IA of the RBI Act. However, the Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.