- SBI levies penalties ranging from 50 to 1 percent
- You can also take a loan on FD if you need money
If you too are facing money problem due to Corona Crisis, then your Fixed Deposit (FD) can get you out of this problem. You can withdraw money before the time if needed. However, some penalty has to be paid on this as well. We are telling you about this facility of the bank.
How much interest will be reduced?
If you are breaking FD ahead of time, then you do not get interest at the rate at which you have FD. For example, suppose you made a FD of Rs 1 lakh at the rate of 6% for 1 year, but you break it only after 6 months and 6 months FD is getting interest at 5% per annum, so In the bank, you will pay 5% interest on your money, not 6%.
How much penalty will you have to pay?
According to the rule of the country’s largest bank SBI, if a person makes an FD of up to Rs 5 lakh, then he has to pay a penalty of 0.50% on breaking it before the FD matures. Similarly, on FDs of more than 5 lakhs and less than 1 crore, 1% penalty will have to be given for breaking before time. After ensuring the interest according to the period (as mentioned above) you are paid your money by deducting .50 or 1% interest according to the FD amount. Most banks charge a penalty of up to 1 per cent.
Also Read: How to get personal loan, home loan and car loan at low interest rate, know how
How to understand complete mathematics?
If you make FD of 1 lakh for 1 year, on which you have to get 6 percent interest annually. In such a case, you will get Rs 106,167 on completion of one year. On the other hand, if you withdraw money after 6 months, you will get interest at the rate of 5 percent, besides a penalty of .50 percent. In such a situation, you will get a total of 102,469 rupees after withdrawing money after 6 months.
You can take loans on FD
. Under this, you can take loans up to 90% of the value of FD. Suppose your FD is worth 1.5 lakh rupees, then you can get a loan of 1 lakh 35 thousand rupees. If you take a loan on FD, then you will have to pay 1-2% more than the interest on fixed deposits. For example, if you are getting 4% interest on your FD, then you can get a loan at 5 to 6% interest rate.
Know which bank is offering loans at what interest rate
| Bank | Loan Interest Rate (%) | Minimum loan (Rupees) | Maximum loan |
| State Bank of India | FD rate + 1% | Online: 25000 At Branch: No Limit | Up to 90% of FD |
| Punjab National Bank | FD rate + 1% | Online: 25000 At Branch: No Limit | Up to 95% of F.D. |
| Axis Bank | FD rate + 2% | 25000 | Up to 85% of F.D. |
| HDFC bank | FD rate + 2% | 25000 | Up to 90% of FD |
| Oriental Bank of Commerce | FD rate + 1% | No limits | Up to 95% of F.D. |
| Federal Bank | FD rate + 2% | No limits | Up to 90% of FD |
| Indian Bank | FD rate + 2% | No limits | Up to 90% of FD |
| Bandhan Bank | FD rate + 1.5-2% | No limits | Up to 90% of FD |
