Punjab National Bank FD Premature Withdrawal

Punjab National Bank FD Premature Withdrawal Penalty Charges

Punjab National Bank applies a uniform 1% deduction on premature withdrawal across all domestic term deposits.

Premature withdrawal rules and penalty rates updated as per prevailing PNB guidelines as of 30th September 2026.

How Interest Is Recalculated on Premature FD Closure

The Punjab National Bank does not use the originally contracted rate once a domestic term deposit is closed or partly withdrawn before maturity. The formula below is used to calculate the interest.

Applicable Interest Rate = Rate applicable to the amount and period for which the deposit remained with PNB − 1.00%

Here,

• The applicable rate refers to the rate for the relevant amount slab and completed period prevailing on the deposit date.
• A 1.00% penal interest applies to eligible domestic term deposits for premature cancellation or partial withdrawal, which is subject to applicable scheme-specific rules and exemptions.

Step-by-Step Calculation Example

Consider a Punjab National Bank FD booked under the 444-day tenure at 6.60% p.a., closed prematurely after completing 271 days.

The PNB FD rate applicable to the completed period, 5.60% p.a., is reduced by 1 percentage point, resulting in an interest rate of 4.60% p.a.

How to Close a Punjab National Bank FD Prematurely

Punjab National Bank offers two ways of premature closure: online and offline. The procedure for both is fixed.

Online Channel (Netbanking)

If you want to prematurely close your FD, you can do so through net banking in the following way:

• Login: Enter your Punjab National Bank net banking account credentials.
• Manage Accounts: Go to the Manage Accounts link from the dashboard menu.
• Open/close Accounts: Select open/close accounts to either open or close your deposit accounts.
• Premature Closure of FD: Click on Premature Closure of FD and select the deposit account.
• Recheck Recalculated Interest: The recalculated interest amount will be shown; recheck the amount.
• Send the Request: The matured amount will appear on the screen.

Offline Channel (Visit to Branch)

A customer can also visit any nearby branch and close a premature FD by following the steps below:

• Visit Branch: Visit any Punjab National Bank branch with your account details.
• Carry ID Proof: Please bring along valid ID proof like Aadhaar card or PAN card.
• Fill Closure Form: Fill the FD premature withdrawal form available at the branch.
• Deposit FD Receipt: Deposit the original FD receipt or certificate, if issued.
• Full Verification: Your documents will be verified, and then your closure application will be approved.
• Proceeds Credited: The amount thus calculated will be credited to your account.

Exceptions and No-Penalty Conditions

Punjab National Bank makes three specific exceptions to its normal premature withdrawal penalty rule.

• Reinvestment Exemption: The 1% penalty is waived if a premature closure of the deposit is reinvested in another PNB term deposit scheme. The new deposit must remain in the bank for a longer period than the time remaining on the original contract.
• Survivor Mandate Exemption: In case of Either or Survivor or Former or Survivor mandate, the surviving depositor may withdraw prematurely without the concurrence of the legal heirs, if there is a joint mandate. There is no penal interest in this case.
• Non-Callable & Tax Saver Deposits: Neither of the products permit premature withdrawal.

Non-Callable FDs vs Callable FDs in Punjab National Bank

Callable FDs allow for an early withdrawal but are subject to the above penalty and recalculation rules. But non-callable FDs work differently. This scheme is available for domestic deposits over ₹1 crore and offers a higher interest rate in exchange for giving up the option of premature withdrawal altogether. The premature withdrawal FD rule for every bank is the same.