SBI FD Premature Withdrawal Penalty Calculator

Overview of SBI FD

State Bank of India (SBI) Fixed Deposits (FDs) are a popular investment choice among Indian savers, offering a secure way to earn interest on lump-sum deposits over flexible tenures ranging from 7 days to 10 years. SBI FDs are known for their safety, predictable returns, and liquidity, allowing depositors to access funds before maturity if needed. However, withdrawing a fixed deposit before its maturity date known as premature withdrawal and it usually attracts a penalty and a lower interest rate

What is SBI FD Premature Withdrawal?

SBI FD premature withdrawal refers to closing or breaking a fixed deposit before the agreed-upon maturity date. This option is useful for investors who need urgent funds, but has certain financial consequences. When an FD is withdrawn prematurely, the depositor typically receives a lower interest rate (applicable for the period the FD was held) and must pay a penalty as specified by the bank's policy.

What is the SBI FD Premature Withdrawal Calculator?

The SBI FD Premature Withdrawal Penalty Calculator is an online tool designed to help depositors estimate the amount they will receive if they break their FD before maturity. This calculator factors in the original deposit amount, tenure, applicable interest rates, and the penalty charged for early withdrawal, giving users a clear picture of the effective returns and the penalty amount. 

How Does the SBI FD Premature Withdrawal Penalty Calculator Work?

A penalty of 0.50% is applied by SBI on premature withdrawals of fixed deposits up to ₹5 lakh, regardless of the deposit's tenure. For retail FDs with amounts between ₹5 lakh and ₹1 crore, a penalty of 1% is charged across all tenures. If the fixed deposit is closed within seven days of opening, the bank pays no interest on the amount. 

Example:

If you invested ₹1 lakh for 2 years at 7% but withdrew after 1 year when the 1-year rate is 6.5%, the penalty (1%) is deducted from the applicable rate, so you receive interest at 5.5% instead of 7%.

For further information, customers can contact SBI customer care at their toll-free numbers: 1800-425-3800, 1800-11-2211, or the toll number 080-26599990.

Advantages of SBI FD Premature Withdrawal Penalty Calculator

• Accuracy: Provides a precise estimate of the payout after penalty and revised interest.
• Convenience: Saves time and effort compared to manual calculations.
• Informed Decision-Making: Helps depositors assess the real cost of premature withdrawal and consider alternatives, such as loans against FD.
• Free and Easy to Use: FD premature withdrawal penalty calculator SBI is available online at no cost and requires minimal details to operate.

Conclusion 

The SBI FD Premature Withdrawal Penalty Calculator offers a practical solution for investors who may need to access their funds before the end of the deposit tenure. By instantly calculating the penalty charges and the revised payout, the tool eliminates guesswork and manual errors, ensuring transparency in the withdrawal process. This enables SBI customers to plan better, compare alternatives, and manage their finances more efficiently, making it an essential resource for anyone considering premature closure of their fixed deposit.

Deposits is taxable based on income tax slab rates. A TDS of 10% is applicable if the annual income from Bank of India FDs exceeds Rs. 40,000, or Rs. 50,000 for senior citizens. If PAN Card details are not provided, the TDS rate increases to 20%.

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