Hello people, Fixed deposit commonly known as FD is one of the most availed investment options in India. And in this article, we are here to tell you what will happen if you break your FD before the maturity period.
Premature withdrawal from Fixed Deposit
Fixed Deposit is also a safe way to invest your money in our country. There is no risk to the investor and the return is also guaranteed. It is an investment where the customers deposit some money in their account for a limited time and earns good interest.
FD is such an account in which the money we deposit is locked without any reason. If the investor needs money immediately, then he can use the option of breaking the FD.
What is premature withdrawal from a Fixed Deposit?
Premature withdrawal from Fixed Deposit is called early withdrawal. Deposited does this when He/She is in great need of money.
What is the penalty charge for premature withdrawal of a fixed deposit in the State Bank of India?
For Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50%. For Term Deposits above Rs 5.00 lacs, the applicable penalty will be 1%.
Although some banks do not mark any penalty on the FD breaker during an emergency or If you invest that money in any other scheme of the bank.
How to break FD before the maturity period in the State Bank of India?
FD is done with SBI Bank with super interest. The tenure of FDs ranges from 7 days to a maximum of 10 years from maturity. All banks have this time of FD. There are 2 ways to SBI Bank. Either let your FD complete the maturity time or you can also make the first withdrawal before the completion of its time.
There are two ways to close the Fixed Deposit in the State Bank of India
- Log in to the official website of the State bank of India.
- Visit the branch of the State bank of India where you made the FD.
Log in to the official website of the State bank of India.
- Go to the official website.
- Login to the account with the credentials (i.e. username and password).
- Click on the option of Fixed Deposit.
- Click on either the term deposit (e-TDR) or Special Term Deposit (e-STDR) option.
- Click on Proceed.
- Click on the option Close account prematurely.
- Your FDs will be listed in this section.
- Select the FD you want to close and click on the proceed button
- Verify your FD detail such as amount, date of maturity, and so on.
- write the reason for closing FD in the remark section and confirm
- Enter the password and click on the confirm tab.
- You will receive a message confirming that the FD has been closed.
- The FD amount will be credited to your savings account.
Visit the branch of the State bank of India where you made the FD
- Visit the bank branch and get the application form for premature withdrawal.
- Fill out the form with the required details like your bank account details, FD number, name, etc.
- Submit the document to the bank and they will process your request.
- Once the FD is closed, the money will come into your account.