Canara Bank FD Premature Withdrawal Penalty Calculator

What is the Canara Bank FD Premature Withdrawal Penalty Calculator?

The Canara Bank FD Premature Withdrawal Penalty Calculator helps you estimate how much payout you will receive if you need to close your fixed deposit early. Canara Bank FD Premature Withdrawal can be useful in urgent situations like medical or education expenses, but the final payout is usually lower due to adjusted interest rates and penalties. This calculator simplifies your financial planning by showing the revised returns based on the actual duration your deposit was held.

Benefits of Canara Bank FD Premature Withdrawal Penalty Calculator

The following are the key advantages of using this Canara Bank FD premature withdrawal penalty calculator:

• Quick Estimates: Instantly check your revised payout without visiting a branch, saving time and effort when managing your Canara Bank fixed deposits.
• Complete Transparency: Clearly shows your post-penalty payout, so you know exactly what to expect when withdrawing your Canara Bank FD early.
• Easy to Use: The Canara Bank FD Premature Withdrawal Penalty Calculator features a user-friendly interface that requires only a few basic details to estimate your revised payout.
• Personalised Results: Uses the applicable FD interest rates for general and senior citizens, ensuring accurate and customised estimates.

How Does the Canara Bank FD Premature Withdrawal Penalty Calculator Work?

The Canara Bank FD Premature Withdrawal calculator uses the compound interest formula to compute the final amount:

The following are illustrations of the calculation process for both general and senior citizens:

1. For General Citizens

   Let’s say a general citizen booked a Canara Bank FD:

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 6.50%
   • Premature Withdrawal: After 1 month (approx. 30 days)

   On the booking date, the applicable Canara Bank FD rates for 7 days to 45 days were 3.50%

   Interest Calculation:

   • Applicable Rate: 3.50%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 3.50% – 1.00% = 2.50%

   Outcome: The investor earns 2.50% interest for the actual holding period instead of the original 6.50% booked rate for 2 years.

2. For Senior Citizens

   Now, let’s look at a senior citizen with the same investment details:

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 7.00%
   • Premature Withdrawal: After 1 month (approx. 30 days)

   On the booking date, the applicable Canara Bank senior citizen FD interest rates for 30 days were 4.00% 

   Interest Calculation:

   • Applicable Rate: 4.00%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 4.00% – 1.00% = 3.00%

   Outcome: The senior citizen earns 3.00% interest for the period held instead of the original 7.00% booked rate.

   Note: Canara Bank generally offers 0.50% higher FD interest rates to senior citizens than general investors, which benefits them even after applying premature withdrawal penalties.

   FD interest rates India have fallen consistently over the last 12 years.

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Canara Bank FD Premature Withdrawal Penalty Charges

Canara Bank FD Premature Withdrawal Penalty Charges apply when a fixed deposit is withdrawn before the end of its term. The bank deducts a 1% penalty from the applicable interest rate based on the completed tenure, reducing the final payout. No interest is paid if the FD is withdrawn within 7 days. Tax Saver FDs cannot be withdrawn early, except in special cases such as the account holder’s death or a court order. 

Key Takeaways

The Canara Bank FD Premature Withdrawal Penalty Calculator helps you estimate the amount you’ll receive if you close your FD before maturity. It calculates returns based on the interest rate applicable for the actual tenure your deposit was held and deducts a 1% penalty.