Can a 5 yr Tax Saving FD be broken in between ?

POSTED BY DevaP ON December 26, 2013 10:45 pm COMMENTS (7)

Hi,

I invested in an FD in SBI Bank for 5 years. The Bank Manager insisted that I create the FD online but I was reluctant as I saw some statement in the website “Pre-mature closure of e-TDR/e-STDR under tax saving scheme is not allowed during the lock-in period. ” So I was wondering if I did it through them, then I would have an option to break my FD if needed.

On asking the Bank Manager concerning this, she said FD’s created either online or otherwise for tax saving purpose cannot be broken at all. I was little taken back cos I was thinking all the while that I could break those 5 year FD’s in case of emergency. Is what the Bank Manager said true?

7 replies on this article “Can a 5 yr Tax Saving FD be broken in between ?”

  1. Sunil says:

    dear sir/mam,
    we make a fd under tax saving scheme for 5 year from
    central bank of india.we file our itr for a.y 2017-18 and claimed for such amount under rs 150000/- investment.
    now we have received a mail from cpc bengaluru that your deductions showing in itr mismatching from
    form 16. now we decided that we will show deduction only as per form 16 not claim fd amount in investment.in this case can we close this tax saving fd pre mature?

    1. Hi Sunil

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/pro

      Manish

  2. Mi Girish

    Mi 5 years sathi fd keli ahe tax saving sathi, pan SBI bank mala maze paise det nahi
    Pls help karun sanga mala maze paise kase milvta yetil

    1. Hi Girish mhatre

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well

      Manish

  3. Swagat says:

    In case I have an emergency and I need the funds anyhow, still can’t it be broken?
    Also if i decide to close the bank account, then in that case won’t i get my funds back?

    1. You can break it, but then you will have to reverse your benefits under 80C

  4. ashalanshu says:

    Dear Deva, no matter Tax Saver Fd is created online or offline, it can not be closed premature.

    Thanks

    Ashal

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