Most of you open a Recurring Deposit (RD) and later wonder, can I close my RD account before maturity. Yes, you can close your RD account before its maturity. But there are important conditions and consequences you should weigh.
Typically, an RD is meant to continue for the full tenure you selected, so you receive the full interest at the agreed rate. If you opt for premature closure (i.e., breaking the deposit before the maturity date), here’s what you should know:
The bank will adjust the interest payable to reflect the shorter tenure. In many cases, the applicable rate will be “one per cent below the contracted rate” for the period the deposit was actually held.
Along with the interest adjustment, the bank may levy a penalty (or treat the deposit as having been held for a shorter period), so you’ll likely receive less than what you would have if you waited until maturity.
Axis Bank provides multiple channels internet/mobile banking, phone banking, or visiting the branch to request premature closure.
Before breaking your RD early, you should compare whether you really need the funds vs the cost (lost interest + penalty).
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RD account refers to the Recurring Deposit, a type of term deposit that is offered by the Indian banks. My father had one but eventually closed it. It helped him to deposit a fixed amount of money every month into his recurring deposit account and get an interest at the rate applicable to fixed deposits. Once he visited the bank and asked the officials
can I withdraw
money from RD account before maturity and got to know that he will not be able to do it. It is like a fixed deposit so the money can only be withdrawn once it gets matured. Several people want to know the same question so let me help them since I know some basic details about it.
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Can I close my RD account before maturity?
My father thought that partial withdrawal of money is allowed but after much discussion, he found out that no such thing can be done. He can withdraw it but it is going to be a complete loss. A 1 % penalty will be levied by the bank for premature withdrawal recurring deposit.
I remember that my father was quite annoyed with the policy that time and asked the officials:
can I close RD before maturity but lerant there is a penalty charge for it as well. It is actually disturbing to know that one cannot withdraw his own money whenever he wants. However no one can force these things or break the rules so my father had to wait until the maturity date arrived and you too have to do that if you do not wish to pay extra charges.
I hope I have answered your question: can I withdraw money from RD account before maturity?
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Can I Close My RD Account Before Maturity?
Rajeshwari
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3 Year
2022-09-06T09:52:49+00:00 2022-09-06T09:52:50+00:00Comment
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