If someone withdraws money from the FD before maturity, then he has to pay some penalty. The penalty that banks levy for premature withdrawal of money from fixed deposits is deducted from the interest paid on the FD.
New Delhi. Fixed Deposit (FD) is a good option for debt investors looking for good capital over a predetermined time period. With a fixed interest rate, bank FDs can be made from 7 days to 10 years. But different terms and conditions apply to them. The most important condition that is very important for you to know is the penalty on the pre-maturity of the FD.
It cannot be denied that a person may need money at any time. If someone withdraws money from the FD before maturity, then he has to pay some penalty. The penalty that banks levy for premature withdrawal of money from fixed deposits is deducted from the interest paid on the FD.
SBI Penalty Rates
If you have made an FD in State Bank of India and you want to withdraw it before the stipulated time, then there are different conditions for that. If your FD is up to Rs 5 lakh, then its premature withdrawal attracts 0.50 percent (for all tenors). If there is an FD above 5 lakhs, then there is a penalty of 1 percent (on all tenors) on it. SBI has stated on its website that interest up to 0.50% or 1% from the rate prevailing at the time of deposit or 0.50% or 1% of the contracted rate, whichever is less, will be applicable.
HDFC Bank’s Penalty Rates on FD The
Bank has stated on its website that on premature withdrawal of FD (whole or part) interest rate is 1% less than the contracted rate or the rate applicable at the time of deposit, whichever is lower. If so, it will be deducted as penalty. This is not applicable on deposits of 7-14 days duration and on deposits of Rs 25 crore or more (one-time deposits made after 2017). There is no penalty on deposits ranging from Rs 5.25 crore to Rs 5.50 crore and deposits of Rs 24.75 or more to Rs 25 crore, depending on the new tax slab.
According to the Penalty Rates
website on ICICI Bank FDs, interest will be calculated at the rate applicable for the period for which the deposit was held with the bank or the contracted rate of deposit, whichever is lower. Apart from this, if any penalty is applicable, then it will also be applicable. 0.50 per cent on maturity for less than one year and 1 per cent penalty if the deposit is for more than one year and more than Rs 5 crore.
According to the Axis Bank FD Penalty Rates
website, you can withdraw money on FDs before maturity, on which a penalty of 1 per cent will be payable. If you withdraw less than 25% of the entire original deposit, you will not have to pay any penalty. If there is a tax saving deposit of 5 years, then you will not be able to withdraw it before maturity.
According to the Penalty Rates
website on FDs of PNB, if you withdraw the term deposit in whole or in part before maturity, a penal interest of 1 per cent (for all tenures) will be levied and the interest will be reduced by 1 per cent or that Penalty of 1 per cent of the interest earned during the period of deposit, whichever is less, at the rate under the scheme on the date of contract applicable for the period. If you want to withdraw money and invest in this bank again for a long time, then you will not have to pay any penalty.
Penalty rates on Yes Bank FD
According to the Yes Bank website, 0.50% for premature withdrawal of deposits of less than 5 crores for one year and 0.50 percent for withdrawal of deposits of 5 crores or more will also be applicable. There will be a deduction of 1 percent on deposits of more than 1 year and up to 5 years and 1% on deposits of less than 5 crores and 1.50 percent on deposits of 5 crores or more for 5 years or more. The bank has also written on its website that the penalty for premature maturity will be applicable to all types of customers, whether they are individuals, non-individuals, senior citizens or employees.
