Bank Sample Letter for Premature Withdrawal of Fixed Deposit

Do you want to withdraw your fixed deposit amount before the maturity period? Looking for a formal sample letter to bank requesting for the premature withdrawal of your fixed deposit? Find it here.

Fixed Deposits (FD) are one of the most popular and safe means of investments. A majority of population invest their amounts on FD as it is risk-free. There are few types of FDs like the regular FD, flexi FD, RD (recurring deposit), 5-year tax saver FD etc. The depositor deposits money with the bank for a fixed period of time. The rate of interest is slightly higher for Fixed Deposits.

Check here for bank sample letters on renewal of credit card and request for change of signature

The depositor receives a certificate/passbook/receipt on investing the amount in FD. On maturity, the depositor receives the principal amount along with the interest. Usually, there is a locking period for FDs and you are not supposed to touch the money till the date of maturity. However, in case of urgent need of money, you can withdraw your FD before the maturity date. When you decide to withdraw the amount from your FD before the maturity date, you need to request and notify the bank on the same. You can give a letter to the bank requesting for the premature withdrawal of FD.

Find here more bank sample letters on stop-payment on cheque and requesting for new ATM-PIN

Format of Letter for Premature Withdrawal of FD

A plain paper letter is always a better option. Write your name and contact details on the top left.

Your Name as in the bank records
Your complete postal address as in the bank records
Your mobile no.
email id, if you have one.
City name

Date in dd/mm/yyyy format

The Chief Manager
Bank Name
Branch Name
City name

Sub: Request for Premature Withdrawal of FD - Reg.

Dear Sir/Madam,

I hold a Savings Bank account with your branch and my SB A/c no. is ________ (write here your SB a/c no.). I had opened a Fixed Deposit on ______ date. (mention the date on which you opened the FD) for an amount of Rs._____/- (mention the amount).

I would like to inform you that I am in urgent financial need and hence would like to withdraw my FD before the maturity date. Following are the details of my FD:

FD / Receipt No. ___________
Amount ___________________
Date of Maturity __________

I would further request you to transfer the amount along with the interest accrued as on date, to my SB account. Please do the needful at the earliest.

Thanking you

Yours faithfully

Your Signature
Your full name in brackets

Important Points to Remember

In case of premature withdrawal of FD, the rate of interest calculated won't be the same as the rate of interest that was offered at the time of opening the FD. There are few banks which might charge a penalty for premature withdrawal, though not in all cases.

More bank sample letters: Complaint letter on non-clearance of cheque and request letter on waiving off of bank charges.

A depositor can also take a loan against an FD or can even take an overdraft against the Fixed Deposits. It is good to take a few FDs on smaller amounts than to take one on a bigger amount.

Also read sample letters on non-clearance of cheque and for cancellation of credit card

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Author: Umesh06 Jan 2019 Member Level: Diamond   Points : 4

A good format for applying to the bank for premature withdrawal of an FD.

I want to mention that earlier banks were issuing FD receipt duly signed by the bank manager under his seal. Nowadays most of the banks issue FD advice when a person opens an account. One can download the advice from the online net banking facility also. Advice can be signed by the bank manager or it can be an unsigned one printed from the internet directly.

So the FD holder will have an FD receipt or an FD advice against his investment. Now, whenever the FD holder wants to withdraw the proceeds before the maturity date he has to simply write on the back of the FD receipt or FD advice a simple sentence as follows -

Due to my personal need, I want to withdraw the FD amount prematurely and request you to deposit the proceeds to my SB account No. .....

Below that sentence one has to sign and put the date and give it to the bank. It will then be processed and there is no hassle of writing an application etc.

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