Bank of Maharashtra FD Premature Withdrawal Penalty Calculator

What is the Bank of Maharashtra FD Premature Withdrawal Calculator?

The Bank of Maharashtra FD Premature Withdrawal Penalty Calculator helps you quickly estimate your revised maturity amount if you close your FD before the decided tenure. In the case of Bank of Maharashtra FD premature withdrawal, the interest is recalculated based on the rate applicable to the actual tenure completed. This rate is determined as per the original booking date, and the applicable penalty is reduced from the interest. 

Benefits of the Bank of Maharashtra FD Premature Withdrawal Penalty Calculator

Here are some of the Bank of Maharashtra FD premature withdrawal penalty calculator benefits:

• Quick Estimations: The FD Premature Withdrawal Penalty Calculator lets you instantly calculate revised payouts without the need to visit a branch.
• Clarity on Penalties: You get a clear layout of how much interest is reduced due to penalties, making it easier to assess the outcome.
• Informed Decisions: The calculator enables you to assess whether withdrawing your fixed deposit before maturity or opting for a loan against it is the more suitable financial choice.
• Tailored Results: It shows accurate results by considering whether you’re a general or senior citizen, along with the applicable FD interest rates offered by the Bank of Maharashtra.

How Does the Bank of Maharashtra FD Premature Withdrawal Penalty Calculator Work?

The final maturity amount of your FD is calculated using the compound interest formula:

Here’s a working illustration of a premature withdrawal penalty calculator for general and senior citizens.

1. For General Citizens

   Let’s say a general citizen withdraws their fixed deposit before maturity. Here's how the revised interest would be calculated based on the completed tenure.

   • Investment Amount: ₹1,00,000
   • Original Tenure: 3 years at a booked rate of 6.50%
   • Premature Withdrawal: After 9 months (271 days) to less than 1 year

   On the booking date, Bank of Maharashtra FD rates for general citizens were 5.50% for deposits between 9 months (271 days) and less than 1 year.

   Interest Calculation:

   • Applicable Rate for Period Held: 5.50%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 5.50% – 1.00% = 4.50%

   Outcome: The payout will be based on 4.50% as per the applicable Bank of Maharashtra FD rates for the completed tenure, resulting in lower returns than the original 6.50%.

2. For Senior Citizens

   Let’s say a senior citizen chooses to withdraw their fixed deposit before maturity. Here's how the revised interest would be calculated based on the completed tenure.

   • Investment Amount: ₹1,00,000
   • Original Tenure: 3 years at a booked rate of 7.00%
   • Premature Withdrawal: After 9 months (271 days) to less than 1 year

   On the booking date, Bank of Maharashtra senior citizen FD rates were 6.00% for deposits between 9 months (271 days) and less than 1 year.

   Interest Calculation:

   • Applicable Rate for Period Held: 6.00%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 6.00% – 1.00% = 5.00%

   Outcome: The payout will be based on 5.00% as per the applicable Bank of Maharashtra senior citizen FD rates for the completed tenure, instead of the originally booked 6.00%.

   Note: Senior citizens typically receive 0.50% higher FD interest rates than general citizens across most tenures.

Bank of Maharashtra FD Premature Withdrawal Penalty Charges

Below is the penalty structure for Bank of Maharashtra FD premature withdrawal:

There is no penalty for FDs withdrawn up to 1 year, but a penalty applies if the FD is held for more than one year. Tax-Saver FDs can only be withdrawn in exceptional cases, such as the account holder’s demise or a court directive.

Key Takeaways

The Bank of Maharashtra FD Premature Withdrawal Penalty Calculator is a handy tool that helps you make informed decisions when you have urgent financial needs. It calculates your revised payout by adjusting the interest rate based on your FD's actual tenure. This ensures clarity on what you’ll receive if you close your deposit early.