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If you invest in FD schemes and want to withdraw before maturity, then you have to take care of some things. Because when you withdraw money from FD scheme before completion of maturity, then you also have to pay some penalty. Since the increase in repo rate by RBI in May 2022, many banks have increased their AFD interest rates several times. It is a good time for investors to invest in FDs and get assured returns. Before putting your money in these deposits, it is important to understand the rules for premature withdrawal on bank FDs in case of emergency.
Many banks in the country offer the option of premature withdrawal of FD. If you want to withdraw the amount, you will have to pay a penalty to the lenders, usually 0.5% to 3%, which may differ from bank to bank. SBI charges a penalty of 0.50% on premature withdrawal from FDs up to Rs 5 lakh.
Know how much the penalty will be
If the investment is more than Rs.5 lakh, the bank can charge you a penalty of 1%. HDFC Bank charges a penalty of 1% in case of premature closure of FD account. Whereas PNB charges an interest penalty of 1% at the time of premature cancellation or partial withdrawal of FD for all tenures. But in case of simple FD scheme, the bank does not levy any penalty for premature withdrawal.
read this also – These banks of Senior Citizen are paying more interest on FD, know full details
Understand calculation like this
The customer has the flexibility to withdraw any amount before maturity in multiples of Re.1, subject to a minimum withdrawal of Rs.1000 at a time. Suppose you have invested Rs 5 lakh in FD scheme, then you will have to pay a penalty of Rs 2500 at the rate of 0.50 per cent for premature withdrawal. On the other hand, if you have invested Rs 8 lakh in FD above Rs 5 lakh, then you will have to pay a penalty of Rs 8000 at the rate of 1 per cent for withdrawing money before maturity.
Source: www.tv9hindi.com”
