HDFC Bank FD Premature Withdrawal Penalty Calculator

What is HDFC Premature Withdrawal?

An HDFC FD premature withdrawal refers to closing a fixed deposit before its agreed-upon maturity date. People need to withdraw their invested amount due to sudden financial needs. Banks allow premature withdrawal but usually with a penalty, such as a reduced interest rate. The depositor then receives a lower Fixed Deposit interest rate (typically for the tenor for which the amount was kept invested).

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How Does the SBI FD Premature Withdrawal Penalty Calculator Work?

The HDFC Bank FD Premature Withdrawal Penalty Calculator helps you understand the interest you'll earn if you close your Fixed Deposit before its original maturity date. 

Essentially, if you withdraw your FD early, the interest rate you receive will be based on the interest rate that was applicable for the actual duration your deposit remained with the bank, on the day you originally booked the FD. From this rate, a 1% penalty is deducted. The original contracted interest rate for the full tenure is not considered in this calculation.

Example:

Let's say you made an investment in an HDFC Fixed Deposit.

Investment Amount: ₹1,00,000

Original Booking: For 2 years at an interest rate of 7.00%

Premature Withdrawal: After 1 year and 3 months (455 days)

Applicable Rate (at time of booking for actual tenure): 6.00% (This was the rate HDFC Bank offered for FDs held for 1 year to less than 15 months on the day you opened your FD).

Here's how the interest is calculated:

Rate for Actual Period Held: 6.00% (This is the rate for the 1 year and 3 months your FD was with the bank, based on rates when you opened it).

Penalty Deduction: 1.00%

Final Interest Rate Applied: 6.00% - 1.00% = 5.00%

Therefore, you will receive interest calculated at 5.00% for the 1 year and 3 months that your ₹1,00,000 was with HDFC Bank, instead of the original 7.00% you expected for a 2-year term.

For further information, customers can visit the HDFC Bank website or contact their nearest HDFC Bank Branch or Relationship Manager.

Advantages of HDFC FD Premature Withdrawal Penalty Calculator

The HDFC FD Premature Withdrawal Penalty Calculator offers you and other investors the following advantages:

• Final Amount Estimation: The calculator gives you the final amount, including the interest earned, you'll get after the penalty deduction.
• Precise Penalty Assessment: The calculator helps you assess the penalty amount charged by the bank and its impact on your payout.
• Reduced Manual Calculation: The HDFC FD Premature Withdrawal Penalty Calculator takes the load of tedious calculations off your shoulders and gives you accurate results.
• Time-Saving: The calculator is an automated tool and provides the returns on your FD investment's premature withdrawal in no time.
• Informed Decision-Making: With the help of the calculator, you get to assess the real cost of premature withdrawal and consider alternatives, such as loans against FD.

Conclusion 

The HDFC FD Premature Withdrawal Calculator is a convenient tool for calculating the interest earned on FDs and the penalties levied on withdrawing the deposited amount before its maturity date. The good thing is that the penalty is deducted only from the interest earned, and your principal amount remains the same. The calculator is a free-of-cost, easy-to-use tool that saves us from indulging in complex calculations. If you are considering premature closure of your fixed deposit, the HDFC FD Premature Withdrawal Penalty Calculator is your go-to.

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