FD Rules: State Bank of India FD, the country’s largest bank, also levies penalty on premature withdrawal of FD from its customers.
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FD Premature Withdrawal Rule: With the changing times, many investment options have come nowadays, but even today, a large number of people in the country prefer to invest in the fixed deposit scheme of the bank. While investing in an FD scheme, you have to choose a period in which you invest your money in the bank.
For this period your money gets locked in the bank, but sometimes people suddenly need money. In such a situation, people take FD Premature Withdrawal Rules even before the completion of their FD period. In such a situation, such FD withdrawal is called Premature FD Withdrawal Rule.
You can withdraw money from FD before maturity, if a person keeps his money invested for the entire period of his FD, then he gets full money in return on maturity. If you break the FD on prematurity itself, then in such a situation penalty has to be paid. This penalty depends on the banks on your amount. Generally, most banks charge 0.5 to 1 percent interest rate from their customers on premature FD withdrawal from their customers. This penalty is levied on the interest money.
Know about the penalty of State Bank and HDFC Bank-
Let us tell you that the country’s largest public sector bank i.e. State Bank of India FD charges penalty from its customers on premature withdrawal of FD. If you do premature withdrawal on deposits of less than Rs 5 lakh, then you will have to pay 0.50 percent interest as a penalty. On the other hand, if you make premature withdrawal on deposits of more than Rs 5 lakh, you will have to pay an interest rate of up to 1 percent as a penalty. On the other hand, if you withdraw money before 7 days, you will not get any interest benefit on the deposit.
At the same time, HDFC Bank, the country’s largest private sector bank, also levies penalty interest rate of 1 percent on its customers on premature FD withdrawal. On the other hand, if you withdraw money within 7 to 14 days, then you will not have to pay any kind of penalty. Withdrawal of less than 1 year on ICICI Bank FD of less than 5 crores, you have to pay a penalty of 0.50 percent. At the same time, you will have to pay a penalty of 1 percent on withdrawal after a longer period of more than one year.
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