Many Axis Bank customers use the Overdraft (OD) against Fixed Deposit (FD) facility to manage sudden financial needs. It’s a convenient way to get funds without breaking your FD. However, when you no longer need the overdraft, it’s essential to close the OD account and remove the lien on your FD properly.
This article will guide you through the entire process step-by-step.
What is an OD Against FD?
An OD against FD is a secured overdraft where Axis Bank allows you to borrow up to 85–90% of your FD amount. The FD acts as collateral, and you are charged interest only on the utilized amount.
Example:
If you have an FD of ₹2,00,000, you can get an OD limit of around ₹1,70,000 – ₹1,80,000.
When you close this OD, the bank removes the lien, and you regain full control over your FD.
Things to Check Before Closing the OD
Before you proceed, make sure you have completed these steps:
✅ Clear all outstanding dues in the OD account.
✅ Pay any pending interest or service charges.
✅ Ensure your FD is still active and hasn’t matured.
✅ Carry valid documents such as your ID proof and FD details.
Step-by-Step Process to Close OD Against FD
Step 1: Clear the Outstanding Balance
Check your OD balance through:
Axis Mobile Banking App
Internet Banking
Visiting the branch
Deposit enough funds to bring the OD balance to zero, including any interest or late fees.
💡 Tip: If you don’t clear the dues, Axis Bank won’t release the FD lien.
Step 2: Visit Your Axis Bank Branch
Go to the branch where:
Your FD was opened, or
The OD account was created.
Carry these documents:
Original FD receipt (if available)
PAN card or Aadhaar card
Savings account details
A cheque or cash if you need to deposit dues
Step 3: Fill Out Closure Forms
Ask the bank staff for:
OD Account Closure Form
Lien Removal Request Form
Fill in details such as:
Your FD number
OD account number
Savings account for FD credit
Step 4: Bank Verification
The bank will check whether all dues are cleared.
Once confirmed, they will remove the lien on your FD.
You will receive an update via SMS or email.
Step 5: Decide the Fate of Your FD
After lien removal, you have three options:
- Continue the FD till maturity.
- Close the FD and transfer the amount to your account.
- Renew the FD for a new term.
Sample Request Letter to Close OD Against FD
You can submit a written application along with the forms. Here’s a sample:
To,
The Branch Manager,
Axis Bank, [Branch Name]
Subject: Closure of OD Against FD and Lien Removal
Dear Sir/Madam,
I hold a Fixed Deposit with your branch, bearing FD No. [FD Number]. I had availed an overdraft facility against this FD under OD Account No. [OD Account Number].
As I have cleared all dues, I request you to close the overdraft account and remove the lien on my FD. Please credit the FD amount to my linked savings account.
Thank you for your assistance.
Sincerely,
[Your Name]
[Mobile Number]
[Customer ID / Savings Account Number]
Final Thoughts
Closing an OD against FD at Axis Bank is a straightforward process once you’ve cleared your dues. Make sure you collect a written acknowledgement or SMS confirmation for your records. This ensures that the OD account is officially closed and your FD is fully under your control again.
By following these steps, you can smoothly manage your FD and OD, keeping your financial planning hassle-free.
FAQs
- Can I close my OD against FD online?
No, you must visit the Axis Bank branch to submit a lien removal and closure request. - How long does it take to close the OD account?
It usually takes 1–3 working days after you submit the request and clear all dues. - What happens if I don’t close the OD after clearing the dues?
The lien will remain active on your FD until you formally close the OD account. - Is there any closure charge?
Axis Bank generally does not charge for closing an OD against FD, but confirm with your branch. - Can I reopen an OD against the same FD?
Yes, you can reapply for a new OD facility as long as your FD is active and meets the eligibility criteri
