Premature of fixed term deposit

The Fixed Deposit Receipt is a non-negotiable instrument. It can not be presented in clearing like like cheques of other banks.  However,  the Bank wherein you are maintaining your S.B.Account, can send the original FDR to the issuing Branch by post with recording your discharge on reverse of it along with a request letter from you.  Nowadays Banks do not undertake such business, they discourage and advise you to go directly to the concerned branch of the Bank wherein you have FDR and settle the matter. Premature closure is not entertained in such cases. 

Better approach the bank where deposit is made for premature closure; but you may lose the interest substantially, if closed prematurely.

There is no bar of law for collection of the proceeds of the fixed deposit cancelled prematuredly, by the FD holder, through another bank under instructions of the FD holder provided the fixed deposit holder complies with the legal requirements contemplated by the bank (the orginator of the FD) to its satisfaction. Moreover the bank paying the proceeds to another bank is on safer side as it does not amount to 'conversion' nor deficiency of service.