Post Office FD: The rules for premature withdrawal of Post Office FD have been changed. After this, if you withdraw the 5 year FD after four years, then you will get the ongoing interest on the deposit on the savings account.
Recently a major change has been made in the rules of FD in Post Office. Due to this, if you make premature withdrawal of 5 year FD, then you will be paid only the interest rate of the savings account for the deposit period. Let us tell you, withdrawal of five year FD of Post Office can be done only after completion of four years of deposit. You cannot withdraw money before four years.
For example, a person has made an FD of Rs 1 lakh for five years at 7.5 percent interest. After four years, if he suddenly needs money and chooses the option of premature withdrawal, then instead of 7.5 percent, he will be paid interest at the rate of 4 percent prevailing on the savings account. In this situation, the person making FD may suffer a direct loss of 3.5 percent on the FD.
Rules for premature withdrawal of FD of 1, 2 and 3 years also changed
The post office rules for premature withdrawal of one, two and three year FDs have also changed. Premature withdrawal cannot be made within 6 months of deposit in FD of one, two and three years. If you withdraw a one year FD after 6 months, then the interest will be paid at the same rate as the savings account.
At the same time, if a two-year FD is withdrawn after six months, a penalty of two percent will have to be paid at the rate of the savings account and if withdrawn after one year. Apart from this, for withdrawal of three year FD after 6 months, a penalty of two percent will have to be paid at the rate of savings account and for premature withdrawal after one and two years.
