Fixed Deposit Charge: Due to some important reasons or in case of sudden emergency, the depositor has to withdraw his fixed deposit (FD) before time. For this, the customer or depositor is allowed to withdraw pre-mature FD from the bank, but the bank charges an amount as penalty for this and it is deducted from the deposited amount.
If you are planning to withdraw your FD deposited in the bank before time, then you should know about how much penalty the bank charges you on pre-mature FD.
What is the penalty for withdrawing pre-mature fixed deposit?
The amount of penalty charge to be deducted on premature withdrawal of FD is decided by the bank based on its maturity date. This penalty or charge is levied on the final interest payment or the refund amount.
Here you can get information about how much charge will be levied for withdrawing pre-mature FD in SBI, HDFC Bank, ICICI Bank, PNB, Canara Bank, Bank of India and Yes Bank.
How much penalty does SBI Bank charge for withdrawing money from pre-mature FD?
According to SBI’s website, if you have made a term deposit of up to five lakhs, then a penalty of up to 0.50 percent will be charged on premature withdrawal of the amount. If the term deposit is above five lakh rupees, then a penalty charge of up to 1 percent will be deducted on premature withdrawal.
What is the penalty charge of HDFC Bank on premature FD withdrawal?
According to the information uploaded on the website of HDFC Bank, the interest rate applicable for premature withdrawal of funds, including partial withdrawal, effective from July 22, 2023, will be 1 per cent less than the rate at which the deposit remains with the bank for the period on the date of deposit.
What is the charge on pre-mature FD of PNB Bank?
According to the information uploaded on the website of PNB Bank, the bank charges a penalty of up to 1 percent on pre-mature FDs. This charge is applicable on premature withdrawal of all types of deposits.
How much penalty does ICICI Bank charge on pre-mature FD?
The bank will pay interest on the amount deposited in the bank i.e. fixed deposit as long as the amount is with the bank for the time period for which it has been deposited. If the FD is broken in between, the bank charges on it. ICICI Bank charges a penalty of up to 0.50 percent on withdrawal of the amount within one year of depositing the FD. On the other hand, the bank charges a penalty of 1 percent on withdrawal of FD after one year.
What is Canara Bank’s penalty charge on pre-mature FD?
According to information obtained from the website of Canara Bank, the bank will charge a penalty of up to 1 per cent for premature closure/partial withdrawal/premature extension of domestic/NRO term deposits of less than Rs 3 crore accepted/renewed after March 12, 2019. The penalty for premature extension of domestic/NRO term deposits is waived under certain circumstances.
Does YES Bank charge a penalty for premature withdrawal of FD?
The bank charges a penalty of up to 0.75 percent for closing the FD before the deadline of 181 days. If you close the FD on or after 182 days, then a penalty of up to 1 percent will be charged on it.
What is the penalty charge on pre-mature FD by Bank of India?
Bank of India does not charge any penalty for withdrawing a deposit of less than Rs 5 lakh or after 12 months of deposit. But if you withdraw an amount less than Rs 5 lakh before 12 months, then the bank charges a penalty of 1 percent on it.
(Note: This information is taken from the data uploaded on the websites of the above banks till 20 November 2024.)
When does penalty not apply on premature withdrawal?
According to information uploaded on the Bank of India website, in case of deposits which are closed prematurely for renewal for a period longer than the remaining period of the original contract period, there will be no penalty for premature withdrawal, regardless of the amount of deposit. If the term deposit is being withdrawn prematurely due to the death of the depositor, there will be no penalty for it.
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