Can you Transfer Your Bank Fixed Deposits (FDs) While Changing Banks?
Fixed Deposits (FDs) are a popular savings option for individuals who are looking for a low-risk investment with a higher return compared to savings accounts. Bank Fixed Deposits (FDs) provide the investor with the assurance of a fixed return on investment and are considered to be a secure form of investment. However, there may come a time when an individual may want to change banks, but they may not know if they can transfer their Bank Fixed Deposits (FDs) to the new bank. In this article, we will discuss the procedure of transferring Bank Fixed Deposits (FDs) from one bank to another.
Why Would You Want to Transfer Your Bank Fixed Deposits (FDs)?
There are several reasons why an individual may want to transfer their Bank Fixed Deposits (FDs) from one bank to another. Some of the most common reasons include:
Better interest rates: If the individual has found a new bank that offers better interest rates on Fixed Deposits, they may want to transfer their Bank Fixed Deposits (FDs) to the new bank.
Convenience: If the individual has moved to a new location and the new bank is closer to their place of residence, they may want to transfer their Bank Fixed Deposits (FDs) to the new bank for convenience.
Better customer service: If the individual is not satisfied with the customer service of their current bank, they may want to transfer their Bank Fixed Deposits (FDs) to a new bank that offers better customer service.
Can You Transfer Your Bank Fixed Deposits (FDs) While Changing Banks?
Yes, it is possible to transfer your Bank Fixed Deposits (FDs) from one bank to another. The process of transferring Bank Fixed Deposits (FDs) is known as ‘premature closure’ and it involves breaking the Fixed Deposit and transferring the funds to the new bank. The individual will have to follow the following steps to transfer their Bank Fixed Deposits (FDs) while changing banks:
Contact the current bank: The first step in transferring Bank Fixed Deposits (FDs) is to contact the current bank and inform them of the individual's intention to transfer the Fixed Deposits to a new bank.
Obtain a ‘No Objection Certificate’ (NOC): The individual will have to obtain a ‘No Objection Certificate’ (NOC) from their current bank, which will state that there are no outstanding dues or penalties on the Fixed Deposit.
Transfer the funds: Once the individual has obtained the ‘No Objection Certificate’ (NOC) from their current bank, they can transfer the funds to the new bank. The individual can transfer the funds either by cheque or by electronic transfer.
Open a new Fixed Deposit in the new bank: Once the funds have been transferred to the new bank, the individual can open a new Fixed Deposit in the new bank.
Are There Any Charges for Transferring Bank Fixed Deposits (FDs)?
Yes, there may be charges for transferring Bank Fixed Deposits (FDs) from one bank to another. The charges for premature closure of Fixed Deposits may vary from bank to bank. Some banks may charge a nominal fee for premature closure, while others may deduct a certain percentage of interest from the deposit amount.
Conclusion
In conclusion, it is possible to transfer