Facebook Instagram Twitter Youtube
  • EMPLOYEES RIGHTS
  • PROPERTY RIGHTS
  • FINANCE
  • SALARY
  • TAX
  • EPF
  • JOB
  • Authors and Team
    • Complaint Redressal
    • Contact US
    • Cookie Policy
    • Correction policy
    • Disclaimer
    • DNPA Code of Ethics
    • Fact-Checking Policy
    • Onwership and Funding
    • Privacy Policy
    • Terms of Service
Search
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
Rightsofemployees.com
- Advertisement -
  • EMPLOYEES RIGHTS
  • PROPERTY RIGHTS
  • FINANCE
  • SALARY
  • TAX
  • EPF
  • JOB
  • Authors and Team
    • Complaint Redressal
    • Contact US
    • Cookie Policy
    • Correction policy
    • Disclaimer
    • DNPA Code of Ethics
    • Fact-Checking Policy
    • Onwership and Funding
    • Privacy Policy
    • Terms of Service
Home FINANCE Premature FD Rule Change: Big news for FD Account Holders! This much...
  • FINANCE

Premature FD Rule Change: Big news for FD Account Holders! This much penalty will have to be paid for breaking FD before maturity

By
Pravesh Maurya
-
April 10, 2023
0
369
Facebook
Twitter
Pinterest
WhatsApp
Telegram
    FD
    - Advertisement -

    Bank FD: If you have got FD done in a bank and want to close it before completion, then you will not get the interest on Fixed Deposit, which was told to you when you got FD done. Let’s know about it in detail.

    - Advertisement -

    Lakhs of people prefer to have bank FDs for safe and assured returns in the country. Amid rising interest rates, banks have also increased the interest rates on fixed deposits. Since FD is made for a fixed period of 1 year or more, but when there is a need for money, many customers break the FD in between. In such a situation, they get less interest, as well as have to pay penalty on it.

    If you have made an FD in a bank and want to close it before completion, then you will not get the interest on the fixed deposit, which was told to you when you made the FD.

    Actually banks deduct interest on premature FD withdrawals, as well as impose penalty on the rest of the interest received. The rules of each bank may differ regarding the provisions related to interest and penalty.

    According to the rules of the country’s largest public sector bank SBI, up to 1% interest is deducted for breaking FD before maturity, along with penalty is also recovered on the interest received on it.

    If you make an FD up to Rs 5 lakh in State Bank of India and break it before maturity, then you have to pay a penalty of 0.50%. On the other hand, if the FD is more than 5 lakhs and less than 1 crore, then the penalty is 1%.

    Suppose you have got an FD of Rs 1 lakh for a period of 1 year, on which you will get interest at the rate of 6%. If you end FD before 1 year, then you will get only 5% interest. Apart from this, a deduction of 0.50% on the interest received will also be done as a penalty. In this way you will suffer double loss and will get interest only at the rate of 4.50%.

    Since money can be needed at any time in life, therefore deposits in banks have to be withdrawn in emergency. But during this period, to avoid loss related to interest, customers can adopt 2 methods.

    The first is that do not get FD of the entire money at once and get several fixed deposits of small amount or get FD of short duration. If you want, you can also take a loan against FD.

    - Advertisement -
    • TAGS
    • Bank FD
    • FD Account Holders
    • Premature FD Rule Change:
    Facebook
    Twitter
    Pinterest
    WhatsApp
    Telegram
      Previous articleIndian Currency: Big news for 500 Rupees Currency Holders! Lying in your pocket is not fake, this is how to identify
      Next articleSupreme Court orders! Big relief school girls…! Free sanitary pads should be given to school going girls across the country
      Pravesh Maurya
      Pravesh Maurya
      https://www.rightsofemployees.com/
      Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @rightsofemployeescom@gmail.com
      Facebook Instagram Telegram Twitter Youtube

      Related ArticlesMore From Author

      FINANCE

      IMD’s high alert, Heavy to very heavy rains for the next 6-7 days

      Big increase in the salary of lakhs of employees, government is going to take this step soon
      FINANCE

      8th Pay Commission: Big increase in the salary of lakhs of employees, government is going to take this step soon

      FINANCE

      ITR Filing Tips: Keep these things in mind while filing ITR, otherwise you may be fined

      Recent Posts

      • IMD’s high alert, Heavy to very heavy rains for the next 6-7 days
      • 8th Pay Commission: Big increase in the salary of lakhs of employees, government is going to take this step soon
      • ITR Filing Tips: Keep these things in mind while filing ITR, otherwise you may be fined
      • Train Cancelled: Railways canceled trains on this route till 25 May, See list here
      • Post Office best Scheme, you will get a guaranteed return of ₹44,664 on ₹3 lakh

      Read More

      IMD’s high alert, Heavy to very heavy rains for the next...

      May 22, 2025
      Big increase in the salary of lakhs of employees, government is going to take this step soon

      8th Pay Commission: Big increase in the salary of lakhs of...

      May 22, 2025

      ITR Filing Tips: Keep these things in mind while filing ITR,...

      May 22, 2025

      Train Cancelled: Railways canceled trains on this route till 25 May,...

      May 22, 2025

      Post Office best Scheme, you will get a guaranteed return of...

      May 22, 2025

      EDITOR PICKS

      IMD’s high alert, Heavy to very heavy rains for the next...

      May 22, 2025
      Big increase in the salary of lakhs of employees, government is going to take this step soon

      8th Pay Commission: Big increase in the salary of lakhs of...

      May 22, 2025

      ITR Filing Tips: Keep these things in mind while filing ITR,...

      May 22, 2025

      POPULAR POSTS

      Public holiday: Govt has declared September 17 as a public holiday....

      September 12, 2024

      School Closed: Govt declares all schools closed till January 15 after...

      December 28, 2024

      Govt Declares December 27 as a Public Holiday…Details Here

      December 26, 2024

      POPULAR CATEGORY

      • FINANCE13632
      • TAX719
      • EPF629
      • JOB218
      • PF149
      • PROVIDENT FUND80
      • PROPERTY RIGHTS52
      • EMPLOYEES RIGHTS49
      ABOUT US
      Rightsofemployees.com brings the Latest News & Top Breaking headlines on Politics and Current Affairs. Up-to-date news coverage, aggregated from sources all over the world by Rightsofemployees.com. Find latest news coverage of breaking news events, trending topics, and compelling articles.
      Contact us: rightsofemployeescom@gmail.com
      • Home
      • About us
      • Authors and Team
      • Contact US
      • Cookie Policy
      • Correction policy
      • Disclaimer
      • DNPA Code of Ethics
      • Fact-Checking Policy
      • Onwership and Funding
      • Privacy Policy
      • Terms of Service
      • Complaint Redressal
      © Copyright 2024 - Rightsofemployees.com Izon web Pvt. Ltd. All Rights Reserved. Contact US Izon Web Pvt. Ltd. Hno. 789, Basement, Dlf Phase 4 Sector 43, Gurgaon, Haryana -122009, Call: +91-9110801499, 0124-4941700