Depositors can opt for easy premature withdrawal from their fixed deposits in an unwanted scenario. The depositor, however as a penalty to bank may have to pay a certain amount.
Bank fixed deposits are considered to be among the safest and hence, are most preferred savings or investment tools in India. Bank FDs are available in tenures ranging from 7 days to up to 10 years from which customer can choose.
There are two types of fixed deposits.-FDs with premature withdrawal
-FDs without premature withdrawal.
Depositors can opt for easy premature withdrawal from any fixed deposits in case of any sudden requirements. The depositor, however, as a penalty may have to pay a certain amount.
SBI's premature withdrawal rules for fixed deposits (FDs):
- Up to Rs 5 lakh for premature withdrawal from SBI FDs, customers are required to pay a penalty of 0.50 per ent across all maturities.
- The bank has fixed the penalty at 1 percent for all tenors, for premature withdrawal from SBI fixed deposits above Rs 5 lakh but below Rs 1 crore.- No interest will be paid on deposits which remain for a period of less than 7 days.