Among the safest ways to invest are fixed deposits. Sometimes, though, we have to terminate our FDs before they mature. There may be a number of reasons for this, such as changing to a better investing choice or experiencing a financial emergency. In these situations, early FD withdrawal or FD breaking might frequently look problematic.
The process of creating or closing a savings account at Bank of Baroda is quite easy. We’ve covered how to close an Fixed Deposit (FD) in BOB both online and offline in this post, along with other important information you should be aware of.
How Can Fixed Deposit (FD) Be Closed in BOB?
Premature withdrawals or breakups of Bank of Baroda fixed deposits are possible both online and offline, that is, in person at the branch.
How to Use Bank Of Baroda (BOB) Online to Close Fixed Deposit (FD)?
The ways for breaking FD in BOB online are as follows. To achieve this, you can utilize the bank’s Smartphone app “BOB World” or Internet Banking.
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Internet banking
Step 1: Go to the BOB online banking page and enter your login information.
Step 2: Select the FD that you’re willing to terminate early by navigating to the deposit area.
Step 3: You can choose whether to close or withdraw the chosen FD there. Press the button.
Step 4: Your FD profile will be terminated when you input the OTP that you will get.
After that, a message will reach your registered phone confirming the successful processing of your request for FD closure.
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m-banking app
Moreover, you may use the Bank Of Baroda (BOB) World Smartphone app to break your FD. The actions you can do are as follows:
Step 1: Register for BOB mobile banking and obtain the BOB World application.
Step 2: Choose “Fixed Deposit” and indicate the kind of FD that is prepared to take out.
Step 3: Verify your FD’s status.
Step 4: Press the “Withdraw” menu item.
Step 5: You will receive an OTP from the bank. After entering the same, select “Continue.”
Upon successful processing of your request, your savings account will be credited with the cash. Your Bank of Baroda fixed deposit has now been successfully withdrawn prior to its maturity.
Read More: Bank of Baroda ATM PIN Generation
How to terminate Fixed Deposit (FD) Offline in Bank Of Baroda (BOB)?
This is a comprehensive instruction that explains how to visit a bank office and break FD in BOB offline.
Step 1: Bring your proof of address and identity verification documents to the BOB branch that is closest to you.
Step 2: Speak with a bank representative to get the form needed to close a fixed deposit account.
Step 3: Enter your basic information, including your bank account number, FD account number, and personal data.
Step 4: Handover the form to the executive.
After completing the aforementioned procedures, the banker will give you a receipt for acknowledgment. You will shortly get a credit to your current or savings bank account.
Bank Of Baroda (BOB) Fixed Deposit (FD) Termination at Maturity
A variety of fixed-rate investment (FD) plans are available from Bank of Baroda, with various maturity terms that start at 7 days and go up to 10 years. One of the simplest and safest investing options on the market are BOB FD schemes. The Bank of Baroda’s Fixed Deposit (FD) plans are likewise very well-liked because of their easy booking and closing processes.
Banks often handle matured FDs in one of two ways:
- The full amount of the FD, including the principal and interest, will be dissolved and credited to the depositor’s associated current or savings account.
- For a period of one year or according to the tenure specified by the account user, the deposit amount is automatically renewed.
Here’s how to precede offline if you want to close the BOB fixed deposit when it matures:
- Just bring your ID proof and FD receipts to the BOB branch that is closest to you.
- Obtain an FD account termination form, and carefully fill it out with all the information requested, including name, savings account number, and FD account number.
- Next, send it in with a copy of your ID as evidence.
Your FD amount will quickly be displayed in your savings account, and the banker will give you an acknowledgement receipt after verification.
In a similar vein, when the fixed-deposit account matures, you may access it online. Let’s investigate how.
- Just use your login information to access your BOB online banking account.
- Select the deposit you wish to close by going into the fixed deposit area.
- Select “Withdraw.” An OTP will be sent to you for validation.
- Once you enter the same, your FD has been successfully closed. Your savings account will soon reflect the amount in your FD.
Read More: Bank of Baroda Savings Account
Things to Keep in Mind before Closing a Bank of Baroda Fixed Deposit (FD) Account
The following are some important things to keep in mind while terminating your BOB FD account.
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Loss of Interest
You might lose a significant amount of interest if you cancel your FD earlier than the designated maturity date, particularly if the amount is large. Therefore, it is important to estimate the interest loss in advance and make financial plans appropriately.
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Penalty Charge Calculation
You should always compute the penalty costs before prematurely terminating your fixed deposit. A 1% penalty is assessed by Bank of Baroda on the agreed-upon interest rate.
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The Laddering Method
This is a widely used strategy among investors, when the account holder opens many smaller-amount FD accounts rather than booking a single FD. They can break one of the many FDs while the others continue to generate profits and stop a substantial amount of interest losing thanks to it. Nevertheless, this method has to be used at the moment of application.
We now understand how to shut FD in BOB in both online and offline modes. When making an early withdrawal, there are a few important considerations in addition to the withdrawal process that need to be made. These include calculating penalty costs, losing interest, or looking into other options.
Furthermore, not all FD programs are eligible for an early withdrawal opportunity offered by the bank. There is a five-year lock-in period on the BOB Taxation Saver FD, which prohibits early withdrawals prior to maturity.
Read More: Fixed Deposit (FD) Interest Rates
