Fixed Deposit Cancellation Letter
Dear Sir/Madam,
I am writing this letter to request the cancellation of my fixed deposit account number ____________ with your bank, which was opened on ____________. Due to some unforeseen circumstances, I have to withdraw the funds from the account before its maturity date.
I understand that as per the terms and conditions of the fixed deposit, there may be a penalty for early withdrawal. Kindly let me know the amount of penalty that I would be required to pay in order to cancel the fixed deposit account.
I request you to kindly process the cancellation of my fixed deposit account at the earliest and transfer the balance amount to my savings account ____________ with your bank. Please confirm the cancellation of the fixed deposit account and the transfer of funds to my savings account via email or letter.
I would like to thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
Formal Fixed Deposit Cancellation Letter
Subject: Request for Cancellation of Fixed Deposit
Dear [Bank Manager Name],
I am writing to request the cancellation of my Fixed Deposit with account number [Account Number] held at [Bank Name]. The deposit was opened on [Deposit Date] for a term of [Tenure].
Kindly process the closure and transfer the principal amount along with accrued interest to my savings account number [Savings Account Number].
I would appreciate your confirmation once the transaction has been completed.
Sincerely,
[Your Name]
Quick Fixed Deposit Cancellation Email
Subject: Fixed Deposit Cancellation Request
Dear [Bank Name] Team,
Please cancel my Fixed Deposit with account number [Account Number] and transfer the amount to my savings account [Savings Account Number].
Thank you for your assistance.
Regards,
[Your Name]
Heartfelt Fixed Deposit Closure Letter
Subject: Request for Cancellation of Fixed Deposit Account
Dear [Bank Manager Name],
I am grateful for the services provided by [Bank Name]. I wish to close my Fixed Deposit account number [Account Number] opened on [Deposit Date] and request the principal and interest to be credited to my savings account [Savings Account Number].
Thank you for your continued support and assistance.
Warm regards,
[Your Name]
Provisional Fixed Deposit Cancellation Letter
Subject: Provisional Cancellation of Fixed Deposit
Dear [Bank Manager Name],
I request provisional cancellation of my Fixed Deposit with account number [Account Number], due to personal financial requirements. Kindly initiate the process, and I will submit any additional documentation if needed.
Please transfer the funds to my linked savings account [Savings Account Number].
Regards,
[Your Name]
Casual Fixed Deposit Cancellation Message
Subject: FD Closure Request
Hi [Bank Name] Team,
I would like to cancel my Fixed Deposit [Account Number] and have the balance sent to my savings account [Savings Account Number].
Thanks for your help!
Best,
[Your Name]
Immediate Fixed Deposit Closure Letter
Subject: Urgent Request for Fixed Deposit Cancellation
Dear [Bank Manager Name],
Please process the immediate cancellation of my Fixed Deposit account [Account Number]. I request that the principal and accrued interest be transferred to my savings account [Savings Account Number] at the earliest.
I appreciate your swift action on this matter.
Sincerely,
[Your Name]
Official FD Cancellation Letter With Reason
Subject: Request for Fixed Deposit Closure
Dear [Bank Manager Name],
I would like to close my Fixed Deposit account [Account Number] due to [reason, e.g., financial requirements, investment plans]. Kindly transfer the total balance including accrued interest to my savings account [Savings Account Number].
Please confirm once the transaction is complete.
Regards,
[Your Name]
What is a Fixed Deposit Cancellation Letter and why is it required?
A Fixed Deposit Cancellation Letter is a formal communication to a bank requesting closure of a fixed deposit account before or at maturity.
Purpose:
- Officially notifies the bank of the closure request.
- Provides details for accurate fund transfer.
- Maintains documentation for financial records and legal purposes.
Who should send a Fixed Deposit Cancellation Letter?
- The account holder who owns the fixed deposit.
- In cases of joint accounts, all primary account holders may need to sign.
- Authorized representatives with proper documentation (e.g., POA) can also send the letter.
Whom should the FD cancellation letter be addressed to?
- Typically addressed to the Bank Branch Manager.
- Can also be sent to Bank Customer Service via email or official portal.
- For corporate deposits, the letter may be addressed to the Relationship Manager or Treasury Department.
When should you send a Fixed Deposit Cancellation Letter?
- When withdrawing a fixed deposit before maturity.
- Upon maturity if you wish to close the deposit instead of renewing.
- In case of urgent financial needs or emergencies.
- When transferring funds to another bank or account type.
How to write and send a Fixed Deposit Cancellation Letter
Steps:
- Include a clear subject line mentioning the FD cancellation.
- Address the bank formally with your branch or manager’s name.
- Mention the account and deposit numbers clearly.
- Specify whether funds should go to a savings or checking account.
- State the reason for closure if desired.
- Include your signature or digital verification.
- Send via email, bank portal, or printed letter based on bank requirements.
Requirements and prerequisites before sending
- Have the FD account number and related details handy.
- Know the linked savings account for fund transfer.
- Check bank policies regarding premature withdrawal penalties.
- Gather necessary identification or authorization documents.
- Determine if any joint account holder approvals are needed.
Formatting and tone guidelines
- Length: 1–2 concise paragraphs.
- Tone: Professional, courteous, and clear.
- Style: Formal for banks, casual acceptable for digital messages.
- Mode: Email, bank portal, or printed letter.
- Etiquette: Provide complete details, be polite, and request confirmation.
Common mistakes to avoid
- Providing incorrect account or FD numbers.
- Forgetting to specify the fund transfer account.
- Using informal or unclear language.
- Not checking penalties or terms for premature withdrawal.
- Omitting signatures or required documentation.
Elements and structure of the Fixed Deposit Cancellation Letter
- Subject clearly stating FD cancellation.
- Salutation addressing the bank manager or department.
- Account/Deposit numbers for identification.
- Reason for cancellation (optional).
- Request for fund transfer with account details.
- Polite closing and signature.
- Optional attachments: ID proof, FD receipt, authorization if needed.
After sending the Fixed Deposit Cancellation Letter: follow-up actions
- Confirm receipt with the bank.
- Check if funds have been transferred correctly to your account.
- Retain confirmation or receipt for records.
- Verify if any penalties or deductions were applied.
- Contact the bank if there is a delay or issue in processing.
Tricks and tips for smooth FD cancellation
- Send the letter at least a few days before fund requirement.
- Include all relevant details clearly to avoid delays.
- Keep a copy of the letter or email for records.
- Use bank’s official channels for faster processing.
- Double-check account numbers and signatures.
