How to Withdraw Money from RD Account After Maturity

A recurring deposit has been one of the most popular options for investment. People who want to save their money and get guaranteed returns on those savings choose an RD. Further, there’s a minimal risk since the returns are always guaranteed with a fixed interest rate.

Like a fixed deposit, even an RD has a maturity period where you can withdraw your money along with the decided interest rate once the account hits maturity. But how to withdraw money from RD account after maturity? Read this article further to understand 8 different ways available for withdrawal.

8 Ways to Withdraw RD After Maturity

There are several ways in which you can withdraw the RD amount after maturity. Below, you’ll see 8 of them to understand the withdrawal process of an RD post-maturity:

1. Renew the RD

The first and one of the most common methods to withdraw the RD amount after maturity is by renewing your RD account. When you renew your recurring deposit account, you will continue to invest in the same account and same scheme with the same terms and conditions. As you renew your RD, you can choose between the same or different maturity duration.

One of the best reasons you should renew your RD for withdrawing the RD amount after maturity is because this is a hassle-free process, as you can either go to the nearest bank branch or do it online.

Renew the RD Automatically

Another way to withdraw RD after maturity and renew the RD account is by setting the auto-renewing process on your RD account. This method refers to the automatic renewal of your RD account on the date it hits its maturity period. Here, you won’t be able to select another duration period as you are setting up the automatic process of renewing your existing RD account.

The auto-renew process is highly convenient if you do not wish to withdraw your RD amount after maturity and are willing to invest in the same RD scheme without wanting to renew it manually.

2. Close the RD

As an investor, if you want to withdraw your RD after maturity, another way to do it is by closing the RD account. Closing your RD account means you can withdraw the entire amount you invested in the account along with the interest you earned on it. You can visit the bank’s branch to close your RD account, and usually, the bank won’t charge any penalty on the closure of the RD amount withdrawal after maturity.

How to withdraw money from the RD account after maturity

Here’s what you need to do to close your RD account and get the RD amount after maturity:

  • Take your RD account number, passbook, and ID proof and visit the bank branch where you have your RD account.
  • You will be given a withdrawal form or request letter where you’ll need to specify the withdrawal RD amount.
  • Submit the form with your ID proof.
  • Upon submitting, the bank will begin processing your RD withdrawal request and verifying your details.
  • After processing, your withdrawal amount will be transferred to the linked current or savings account.
  • Verify the amount transferred to know whether the correct amount has been transferred.
  • If you have collected a cheque, instead of letting the amount be deposited in your account, you can deposit the cheque or encash it into your bank account.

Please note that this process may vary depending on the bank you have opened your RD account with. Check with your bank and understand how to close your RD account and withdraw RD after maturity.

3. Extend the RD

You can even extend your RD account maturity period by requesting the bank in writing. However, the interest rate that you will earn on this extended RD account may differ from the original RD account. But as an investor, you can choose to decide the duration of the extended RD account depending on your personal and financial goals.

4. Convert the RD to FD

If you do not wish to withdraw the RD amount after maturity just yet, you can easily convert your RD account into a fixed deposit (FD) account. This is great for you if you are not willing to invest in an RD but also don’t want to let go of your investing habit, so creating an FD can be a great way to maintain the investing habit.

Learn About – What is a Fixed Deposit(FD) Account?

5. Partially Withdraw the RD

Some banks allow partial withdrawal of the RD amount after maturity if you don’t wish to extract the entire amount and want to continue earning interest on that amount. However, before you partially withdraw the RD, you need to understand that the interest you’ll be earning on the remaining RD in the account will differ from what you earned earlier.

6. Transfer the RD Amount to a Savings Account

There’s another way to withdraw the RD amount after maturity – by transferring the amount to your savings account, including the interest rate earned on the RD amount. This is great if you want immediate access to the funds or want to use the RD money for other purposes. However, if you are transferring the RD amount to your savings account, you need to keep in account that the interest rate on a savings account is less than it is on RD.

7. Reinvest the RD Interest Earnings

What else can you do with your money once you withdraw RD after the maturity process in India? You can choose to reinvest the amount along with interest earned on it into a different investment option or the same RD. This allows you to maximise your savings as you’ll continue earning interest on your RD amount.

8. Open a New RD

Lastly, you can even open a new RD account to withdraw the RD amount after the maturity period ends of your existing RD account. If you wish to continue earning interest on your RD savings over a fixed period and want to keep earning a return on your RD investment for a guaranteed period, opening a new RD account is your best option. You can even select a different interest rate and duration period for the new RD account.

If you are looking forward to opening a new RD account, Freo can be your ideal partner. With the possibility of earning up to an 8.7% interest rate on your investment every year, you can increase your savings with a fixed return!

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Everything about RD – What Is A Recurring Deposit? How RD Works & Its Features