Quick Answer: Can We Close Tax Saver FD Before Maturity?

What if I close my FD before maturity?

Withdrawing an FD before maturity is known as breaking an FD.

When you break the FD, you get a lower rate of interest and also pay a penalty for the premature withdrawal.

If you decide to break an FD at 10 months, the interest earned on the FD will reduce by 1%..

Can I break 5 year tax saver FD before the completion of 5 years?

1/ The lock in period for such a “Tax saving Fixed Deposit” is 5 years. You can not break this Fixed Deposit before 5 years tenure is over. This is different from any regular Fixed Deposit which can undergo a premature withdrawal.

Can I break my 5 years fixed deposit?

The FD can be placed with a minimum amount which varies from bank to bank. 3. These deposits have a lock-in period of 5 years. Premature withdrawals and loan against these FDs are not allowed.

What is the maximum transaction amount for a tax saver FD?

100 to a maximum of Rs. 1,50,000. The Tax Saving Fixed Deposit comes with 3 options. Choose from Tax Saving – Reinvestment Deposit, Tax Saving – Quarterly Interest Payout or Tax Saving – Monthly Interest Payout depending on the interest pay-out most suitable for you.

Can we withdraw tax saver FD before maturity?

Partial and premature withdrawals may be permitted with penalties. Taxpayers can invest in tax-saver FD schemes to save taxes under Section 80C of the Income Tax Act, 1961. Upon maturity of the FD account, investors can reinvest the sum for another term. Loan against FDs are available.

How can I close my tax saver FD?

Pre-mature closure of e-TDR/e-STDR under tax saving scheme is not allowed during the lock-in period. After 5 years, you may close it through your home branch only. In case of death of depositor, legal heir of depositor may pre-maturely close it through home branch only.