A Fixed Deposit is like a pool wherein you keep your money with a bank for a fixed time. This pool of money keeps growing at a fixed rate. However, there is always a question that, “Can we initiate premature closure of our Fixed Deposit i.e. before the fixed period if we really need it?” The answer is – Yes, we can.
Premature closure could be due to various reasons like a medical or other emergency, marriage, education, etc. Let’s take the story of Seeta as an example. Seeta is a homemaker who has collected money to invest somewhere. Considering Fixed deposit a safe option as it gives her fixed interest for a fixed time period, Seeta decided to invest in it for 3 years; but suddenly, after 2 years, she decided to withdraw the amount to redo her kitchen.
However, before deciding to prematurely close her Fixed Deposit account she made a smart decision and referred the below guidelines before initiating premature closure of Fixed Deposit. These are as follows:
Seeta had never thought that she would actually lose out on so many benefits if she had prematurely closed her Fixed Deposit account in a hurry. Similarly, on knowing the above points, we are sure you must have understood that for any investment options to work effectively and earn more, it is best to leave it until its maturity.
Learn more about how does bank calculate interest on FD(Fixed Deposits) and also get to know what is a fixed deposit before initiating premature closure of Fixed Deposits