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Fixed Deposit Closure Application Letter to Bank Manager

Closing a fixed deposit (FD) account with your Bank can seem daunting. However, writing an application letter to your bank manager requesting the closure of your FD account is simple. This comprehensive guide provides step-by-step instructions and sample letters to help you easily write a practical FD closure application.

Fixed Deposit Liquidation Application to Bank Manager

You may need to close or liquidate your fixed deposit account prematurely due to an unexpected financial emergency. Here is a sample application letter to request your bank manager for premature closure of the FD account:

Date: DD/MM/YYYY

To,

The Manager

[Bank Name]

[Bank Address]

Subject: Request for premature closure of Fixed Deposit Account No. [xxxxxx]

Respected Sir/Madam,

I, [Your Name], presently reside at [Your Address] and hold a fixed deposit account [FD Account Number] at your [Branch Name] branch. The details related to the account are:

  • FD Account Number:
  • Date Opened:
  • Original Tenure:
  • Maturity Date:
  • Original Deposit Amount:
  • Interest Rate:

I opened this [1/2/3 years] FD account [days/months/years] ago for [purpose, e.g., children’s education/wedding/vacation]. Unfortunately, due to [state reason], I am facing an urgent financial crisis and need money.

Therefore, I request that you let me close my fixed deposit account prematurely. I request you to [waive off penalties for pre-closure/deduct minimum pre-closure penalties] and pay the principal deposit amount along with accrued interest earned to date.

I will be highly thankful to you for considering my application favorably. Please let me know if you need any other documents from my end to process this closure request.

Sincerely,

[Your name]

[Your signature]

Encl: Copy of FD account statement/passbook

This application letter clearly states your requirement for premature FD closure while providing critical details about your FD account. Customize the letter with your personal details and account information. Politely request the bank manager to consider waiving off or minimizing penalties to improve the chances of approval.

Application for Fixed Deposit Early Withdrawal Due to Financial Hardship

Are you facing unexpected medical expenses, job loss, or other emergencies? Here is how to write an application to withdraw your FD principal prematurely:

Fixed Deposit Early Withdrawal Application Due to Medical Emergency

Date: DD/MM/YYYY

To,

The Manager

[Bank Name]

[Bank Address]

Subject: Request for Fixed Deposit premature closure due to medical emergency

Respected Sir/Madam,

I, [Your Name], hold a fixed deposit account [FD account number] at your [branch name] branch. I had opened this [1/2/3 years] FD on [date] for Rs [amount] at an interest rate of [rate]%.

Unfortunately, my [relation] has been hospitalized recently for [medical condition], and the treatment requires approximately Rs [amount]. This has put an extreme financial burden on my family. I’m sharing copies of medical reports and bills as document proof here for you.

As I do not have enough savings to pay for the treatment, I request you to allow premature closure of my fixed deposit. Please allow closure of my FD and pay the principal along with interest accrued to date after deducting minimum penalty charges.

Please understand my situation and process my closure request urgently. Please let me know if any other supporting documents are required from my end.

Sincerely,

[Your name]

[Your signature]

Encl: Medical reports/bills copy

To support your application, submit additional documents like doctor prescriptions, medical test reports, hospital bills, etc. Being polite and highlighting urgency may help get it approved faster.

Fixed Deposit Premature Withdrawal Request Due to Job Loss

Date: DD/MM/YYYY

To,

The Manager,

[Bank Name]

[Bank Address]

Subject: Fixed Deposit Premature Closure Request Due to Job Loss

Respected Sir/Madam,

This is to inform you that I, [Your Name], working as [designation] at [company name], have recently lost my job due to the company winding up operations.

I have an existing fixed deposit account [FD account number] at your [branch name] branch, which I opened [months/years ago]. The details related to it are:

  • FD Account Number:
  • Date Opened:
  • Tenure:
  • Maturity Amount:
  • Interest Rate:

As I have lost my primary source of income, I am facing severe financial constraints to manage monthly household expenses. I would therefore like to request that you please allow me to close my fixed deposit account prematurely.

I would be grateful if you waive any penalty charges for premature withdrawal and sanction closure as soon as possible. Please feel free to contact me if any clarification or documents are required for expediting this closure request.

Sincerely,

[Your name]

[Your signature]

Encl: Company closure notice/termination letter

Customize this sample letter with your employment and FD details. Including authentic evidence of job loss will portray genuineness.

Application to Close Fixed Deposit Due to Other Financial Emergency

Date: DD/MM/YYYY

To,

The Manager,

[Bank Name]

[Bank Address]

Subject: Fixed Deposit Premature Closure Application

Respected Sir/Madam,

I opened a [1/2/3 years] fixed deposit account [FD account number] at your [branch name] branch on [date] with an interest rate of [rate]%, which totals a maturity amount of Rs [amount].

[Explain your situation briefly – a medical emergency, accident expense, house repair due to damage, etc.]

Due to this [financial/medical] emergency, I have inadequate funds to meet the expenses. Please allow the premature closure of my FD account.

Please waive off or charge minimum penalties on closure so I can withdraw the principal and accrued interest urgently to meet my financial needs. I’m sharing the necessary supporting documents here.

Please feel free to contact me at +91-xxxxxxxxxx for any clarifications needed to process this request as soon as possible.

Sincerely,

[Your name]

[Your signature]

Encl: Supporting documents

Briefly explain your situation and financial constraints while requesting to waive off penalties. Submit relevant proofs to validate your emergency.

Application for Fixed Deposit Closure for Investment Opportunities

Sometimes, better investment avenues that provide higher returns may arise. Here is how you can request to close your existing FD and reinvest funds:

Date: DD/MM/YYYY

To,

The Manager

[Bank Name]

[Bank Branch]

Subject: Application for Fixed Deposit closure to reinvest funds

Respected Sir/Madam,

I, [Your name], hold a Fixed Deposit account [FD account number] at your branch, which was opened on [date] for a tenure of [1/2/3 years] years at an interest rate of [rate]%.

Recently, my [relationship] informed me about some [property purchase/stock market investment] opportunity that promises [higher / better] returns compared to my existing FD account’s interest earnings.

I request that my Fixed Deposit account be closed to reinvest the maturity proceeds into this new [real estate/equity] opportunity for better wealth creation. Please deduct the minimum pre-closure penalty and provide me closure proceeds as soon as possible to avail of this time-bound offer.

Don’t hesitate to contact me on my mobile number, +91-X, in case any clarification or documents are required from my end to process this request.

Sincerely,

[Your name]

[Your signature]

Briefly explain the new investment opportunity and expected higher gains to justify your closure request logically. Submitting any proof of such offers will add more credibility.

Application to Revoke Fixed Deposit Auto-renewal and Request Closure

If you don’t wish to continue your FD account post maturity, write an application letter to the bank manager requesting cancellation of auto-renewal and closure of the account after maturity payment.

Date: DD/MM/YYYY

To,

The Manager,

[Bank Name]

[Branch Address]

Subject: Request for Fixed Deposit Auto Renewal Cancellation and Account Closure

Respected Sir/Madam,

This is to inform you that I have a fixed deposit account [FD account number] with your branch. As per the FD agreement terms, the performance is set to auto-renew on maturity for the existing tenure.

However, I want to cancel my FD account’s auto-renewal option. Kindly ensure the account is not renewed automatically when it matures on [maturity date].

On maturity, please credit the principal plus accrued interest to date to my savings account [savings account number]. Post this, kindly close my FD account with your Bank permanently.

Please revert if you need any other supporting documents to process this request.

Sincerely,

[Your name]

[Your signature]

Clearly instruct the Bank not to renew your FD automatically, along with an account closure request after maturity payment proceeds are credited.

Application for Fixed Deposit Account Termination After Maturity Date

Here is how to formally request the closure of your fixed deposit account post-completion of its tenure:

Date: DD/MM/YYYY

To,

The Manager

[Bank Name]

[Branch Address]

Subject: Fixed Deposit Account Closure after Maturity

Respected Sir/Madam,

Please note that I hold a fixed deposit account [FD account number] at your [branch name]. The said FD account was opened on [date] for the tenure of [months/years] at [interest rate]% interest rate, which is set to mature on [maturity date].

My account shall complete its stipulated tenure next week upon maturity. Please credit the entire principal deposit amount and accrued interest for a full term to my Savings Account [savings account number] on [maturity date].

Post this payment, kindly close my FD account [FD account number] with your Bank permanently. Please revert if any other supporting documents are required from my end for this closure procedure.

Sincerely,

[Your name]

[Your Signature]

Inform the Bank about your matured FD details while requesting account termination post-maturity payout. Keep the letter formal and polite for quick processing.

Application to Consolidate Multiple Fixed Deposits and Close Accounts

If you hold multiple FDs, here is how to request combining them into one consolidated FD account:

Date: DD/MM/YYYY

To,

The Manager

[Bank Name ]

[Branch Address]

Subject: Fixed Deposit Accounts Consolidation and Closure Request

Respected Sir/Madam,

I have been banking with your esteemed branch for the past [years] and hold [number] fixed deposit accounts as per the following details:

FD Account No.

Opened On

Tenure

Maturity Date

Current Value

Interest Rate

xxxxxx

DD/MM/YYYY

[Years]

[Date]

Rs [amount]

[rate]%

To simplify management, I want to consolidate all my existing FDs into one Fixed Deposit account. Request you to combine all my FDs into one consolidated account with an aggregate principal value of Rs [total amount].

Please set the new consolidated FD for [1/2/3 years] tenure at the maximum interest rate applicable. Also, please close my individual FD accounts post successful funds transfer into the new consolidated account.

Please confirm the latest procedural formalities for FD consolidation and associated charges, if applicable. Eagerly await your response.

Sincerely,

[Your name]

[Your signature]

Furnish all your existing FD details in a table for clarity. Specify tenure, interest rate desired for new consolidated accounts, and closure requests for old accounts.

Fixed Deposit Closure Application Letter to Bank Manager With Pictures

Application for Fixed Deposit Early Withdrawal Due to Financial Hardship
Application for Fixed Deposit Early Withdrawal Due to Financial Hardship
Fixed Deposit Premature Withdrawal Request Due to Job Loss
Fixed Deposit Premature Withdrawal Request Due to Job Loss
Application to Close Fixed Deposit Due to Other Financial Emergency
Application to Close Fixed Deposit Due to Other Financial Emergency
Application for Fixed Deposit Closure for Investment Opportunities
Application for Fixed Deposit Closure for Investment Opportunities

How to Write Fixed Deposit Closure Application Letter to Bank Manager

Follow these quick steps to draft a practical fixed deposit account closure request application to your Bank:

  • Open with Salutation – Start by formally addressing your bank manager with a ‘Dear Sir/Madam’ salutation.
  • Mention Account Details – Provide your complete FD account details like account number, date opened, tenure, interest rate, etc.
  • Reason for Closure – Outline specific reasons for submitting the FD closure request application.
  • Supporting Documents – Furnish copies of supporting documents like medical bills, termination letters, etc., based on closure reason.
  • Closure & Settlement Request – Request the bank manager to process FD account closure and settlement of maturity proceeds into your savings account.
  • Signature & Contact Info – Close the letter with your name, signature and contact details for further communication.

Being polite, highlighting the urgency for funds (if applicable), and enclosing relevant documents can significantly improve the chances of approval. Adapt provided samples and follow guidelines to quickly draft an effective FD account closure application letter suitable to your specific requirements!

Conclusion

We hope this comprehensive guide with detailed samples for different scenarios helps you easily write an appropriate fixed deposit closure application letter to your bank manager without any hassles. Remember to be polite, explain the rationale clearly, and enclose supporting proofs wherever feasible to fast-track closure approval! Let us know if you have any other queries.

FAQs

What documents are required for a fixed deposit closure request?

Ans. The Bank may request documents like FD account statements, ID/address proofs, PAN, supporting proofs like medical bills, etc., for closure.

How much time does the Bank take to close an FD account?

Ans. Banks usually process FD account closure requests within 5-7 working days after letter submission and any other documents sought.

Can I get my FD money back before the maturity date?

Ans. Yes, you can submit a request for premature FD closure in case of emergency, though banks may levy penalty charges on the principal amount.

What happens if the FD account auto-renewal is not canceled before maturity?

Ans. If auto-renewal is active and not revoked before maturity, the FD amount will be automatically reinvested post-tenure for the existing lock-in period.

Also Reads,

7+ Bank Account Transfer Applications For SBI/ICICI
11+ Bank Cheque Book Request Letter In English (2023)

 

Author

  • ilmhere

    Bilal Rafique, the person behind Ilmhere.com, works hard to create real and detailed educational content that helps people get better at English. Ilmhere.com is a website where you can learn English online. It covers lots of topics like English grammar, how to write applications, and other useful things to make learning easier.

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ilmhere

Bilal Rafique, the person behind Ilmhere.com, works hard to create real and detailed educational content that helps people get better at English. Ilmhere.com is a website where you can learn English online. It covers lots of topics like English grammar, how to write applications, and other useful things to make learning easier.

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