Have you invested in FD? And you need money. So let us tell you that banks allow FD customers to withdraw before maturity. However, they are also fined for this.
If you are thinking of withdrawing before maturity, then you must keep in mind the penalty of the bank on this. Let us know how much will be charged for doing this work in big banks of the country like SBI, PNB, HDFC Bank and ICICI Bank.
State Bank of India (SBI)
According to the SBI website, for term deposits up to Rs 5 lakh, the penalty for premature withdrawal will be 0.50 per cent. At the same time, in FDs with an amount of more than Rs 5 lakh, the penalty for premature withdrawal will be 1 percent. For the period for which the deposit is deposited with the bank, the rate of interest will be 0.0 percent or 1 percent less than the effective rate at the time of deposit. Whichever is less will apply.
Punjab National Bank (PNB)
According to PNB’s website, one percent penalty interest will be charged at the time of premature withdrawal in FD. This will be applicable for all tenures and interest rates.
HDFC Bank
According to the HDFC Bank website, for such premature withdrawals, which include sweep-in and partial withdrawals, the bank will charge a penalty at the rate of one per cent on the applicable rate. However, there will be no penalty for premature withdrawal in FDs for a period of 7 to 14 days.
ICICI Bank
Apart from this, interest will be charged at the rate at which the deposit is deposited with the bank as well as the deducted rate of deposit in ICICI Bank. Whichever is less will apply. A penalty of 0.50 per cent will be charged on maturity of less than one year and amount less than five crore rupees. For a period of one year to five years or more, there will be a penalty of one per cent.
Public sector Bank of Baroda (BOB) has increased interest rates on retail term deposits of various durations by up to 0.65 per cent. The bank said in a statement on Monday that now the customer will get 6.75 per cent interest on deposits with a tenure of 1 year.
