Indian Bank FD Premature Withdrawal Penalty Calculator

What is the Indian Bank FD Premature Withdrawal Penalty Calculator?

Indian Bank FD Premature Withdrawal Penalty Calculator helps you estimate the revised payout if you close your FD before maturity. It recalculates the interest based on the rate applicable for the actual tenure completed, which is usually lower than the originally booked rate. This makes it easier to understand the impact of Indian Bank FD premature withdrawal before making a decision.

Benefits of Indian Bank FD Premature Withdrawal Penalty Calculator

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

• Quick Estimations: Instantly calculate the revised interest earnings using the Indian Bank FD Premature Withdrawal Penalty Calculator without visiting a branch.
• Penalty Info: Understand exactly how much interest you will lose on your Indian Bank FD based on the tenure completed, using the FD Premature Withdrawal Penalty Calculator.
• Differentiation for Senior Citizens: The calculator adjusts interest based on the Indian Bank’s preferential FD rates for senior citizens, ensuring accurate results.
• Simple and User-Friendly: Use the Indian Bank FD Premature Withdrawal Calculator to estimate your revised payout in case of early closure. 

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

The Indian Bank FD premature withdrawal penalty calculator estimates your revised FD payout using a compound interest formula, adjusted for penalties applicable on premature withdrawal.

Below are examples showing how interest is computed for general and senior citizens.

1. For General Citizens

   Let’s say a customer invested:

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at 6.50% p.a.
   • Withdrawal Timing: After 1 year and 2 months (425 days)

   On the booking date, the applicable Indian Bank FD interest rates for deposits between 1 and 1.5 years stood at 6.10%.

   Interest Calculation:

   • Applicable Interest Rate: 6.10%
   • Penalty Deduction: 1.00%
   • Final Rate: 6.10% – 1.00% = 5.10%

   Outcome: Interest will be paid at 5.10% for 1 year and 2 months, not at the original 6.50%.

2. For Senior Citizens

   Now, let’s assume a senior citizen had the same investment:

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at 7.00% p.a.
   • Withdrawal Timing: After 1 year and 2 months (425 days)

   On the booking date, the applicable Indian Bank senior citizen FD rates for deposits between 1 and 1.5 years were 6.60%.

   Interest Calculation:

   • Applicable Interest Rate: 6.60%
   • Penalty Deduction: 1.00%
   • Final Rate: 6.60% – 1.00% = 5.60%

   Outcome: Interest will be paid at 5.60% for the actual period, not the booked 7.00%.

Indian Bank FD Premature Withdrawal Penalty Charges

Indian Bank recalculates the interest based on the applicable rate for the date the FD was held. A 1% penalty is deducted from the applicable interest rate in case of premature withdrawal. No interest is paid if the fixed deposit is closed within 7 days of opening. Premature withdrawal is not allowed for Tax Saving FDs. Additionally, no foreclosure charges are levied on deposits held in the name of staff, ex-staff, or ex-staff who are also senior citizens.

Key Takeaways

The Indian Bank FD Premature Withdrawal Penalty Calculator helps you estimate your revised payout after deducting the penalty. It uses the actual holding period and the applicable FD interest rates to provide an accurate calculation. Rather than using the original booked rate, Indian Bank applies the rate for the completed tenure on the date of deposit and reduces the penalty.