FD Withdrawal Rules:- Everyone wants that he and his family should not face any kind of trouble. In such a situation, many people deposit their accumulated capital in a scheme or bank, but when they withdraw money at the time of need, the charge on their money is also deducted. They do not have any idea about this charge, so before investing or depositing money anywhere, we should know about the charges and benefits.
First of all know what is FD
In financial terms, FD generally refers to fixed deposits. It is a financial instrument offered by banks and other financial institutions where a person deposits money at a predetermined rate of interest for a specified period of time. The money is locked-in for a specified period, and the depositor earns interest on the principal amount.
Can you break FD prematurely?
Depositing money in Fixed Deposit is considered the best way of investment. In this you deposit money for a fixed period. When your FD matures, you withdraw that money to spend as per your need. Every bank gives interest on fixed deposits to its customers, so that the customer can benefit.
What is the charge on which bank?
RBI had increased the repo rate in May 2022. After this, Indian banks have changed their FD interest rates several times. Experts believe that this is a good time for investors to invest in FDs. But now the question is that if for some reason the money has to be withdrawn before the maturity of the FD, then how much will be charged for it. Let us know which bank charges how much.
Banks give the option of premature withdrawal from FD. If you want to withdraw money from your FD, you will have to pay a penalty charge usually ranging from 0.5% to 3%. Withdrawal charges vary from bank to bank. State Bank of India (SBI) charges 0.50 per cent on premature withdrawal from FDs up to Rs 5 lakh.
While SBI Bank charges 1% on FDs above Rs 5 lakh. HDFC Bank charges 1% on premature closure of FD account.
Punjab National Bank (PNB) charges an interest rate of 1 per cent for premature closure of FDs. There, In PNB Sugam Term Deposit Scheme (PNB Sugam Term Deposit Scheme), the bank does not impose any penalty for closing FD before maturity.
In this scheme, the depositor has the facility to withdraw money before maturity. Under this scheme, the depositor also gets interest along with the deposited amount. Punjab National Bank has revised the interest rates on FDs of less than Rs 2 crore with effect from May 18.