Fixed deposits, also called as term deposits, is one of the best ways to save money for your future living.
Premature withdrawal of fixed deposits or FDs gives the option to the depositor to shut the term deposit before its maturity date.
But due to premature withdrawal, a certain amount of money is deducted from the depositor’s account by the bank as penalty.
The largest bank of India State Bank of India, SBI levies a penalty of 0.50% for premature withdrawal of an FD upto 5 lakh.
1% is charged by the bank for premature withdrawal of fixed deposit over 5 lakh but less than 1 crore.
The bank doesn’t pay any interest on fixed deposits which stay for a time of less than 7 days.
You can check the bank’s official website sbi.co.in to understand in detail about the various rates of interest for fixed deposits of different tenures.
Also, as now we are staying at home under lockdown, you can avail the bank’s online fixed deposit facility to ensure your savings are safe.
By Sahana Iyer
