A fixed deposit (FD) is an interest-bearing investment that offers assured returns for a fixed tenure. In this, the depositors invest a fixed amount of money with an entity for a fixed tenure at a contracted rate of interest.Read more
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State Bank of India (SBI), India’s PSU banking behemoth, offers fixed deposits generally for a tenure ranging from 7 days to 10 years.
In addition to safety as an option, a fixed deposit is liquid as well. One may open and close a fixed deposit anytime as per convenience. Investors have the choice of continuing their fixed deposit (FD) till maturity or accessing it before the end of tenure by way of a premature withdrawal in the event of a need.
However, it's not advisable to close one’s fixed deposits prematurely as a nominal amount may be needed to be paid by the depositor as a penalty to the bank. This is done to encourage the habit of saving and discourage frequent withdrawals.
The calculator depicts the following penalty calculations:
To begin with, no interest is payable on Deposits that remain for a period of fewer than 7 days. Further, the interest rate receivable shall be 0.50% or 1%below:
For example, if Rs. 1 crore fixed deposit is opened with SBI for 2 years at 5.10% p.a. and the investor wishes to withdraw it after 1 year prematurely. Then, the penalty payable shall be @1%. Also, the revised interest rate payable on the fixed deposit shall be 4.00% p.a. (5.00% - 1.00%).
Prematurely withdrawing the fixed deposit can cost an investor due to the penalty and a possible reduction in the effective interest rate. Therefore checking the bank's premature withdrawal terms and conditions existing at the time of placing the fixed deposits is of paramount importance.
The primary purpose of using the SBI FD Premature Withdrawal Penalty Calculator is to evaluate, at the click of a button, the economics of liquidating a fixed deposit investment before its scheduled end of tenure.
It eliminates any cumbersome, manual, error-prone calculation. Some of the critical advantages of utilising the SBI FD Premature Withdrawal Penalty Calculator are:
While interest rates on bank FDs are subject to changes from time to time, depending on the prevalent interest rate scenario, fixed deposits already contracted by deposit holders remain constant for the tenure of the deposit. If, in any event, the deposit holder chooses to redeem the deposit before the date of maturity, a penalty will be charged, which depends on the policy of the bank.
SBI FD Premature Withdrawal Penalty Calculator is a convenient online tool to help an investor estimate the amount of penalty that is payable in the event of a premature withdrawal. It assists an investor to determine the penalty that is payable in the situation of a premature withdrawal of a fixed deposit.
In addition, the SBI FD Premature Withdrawal Penalty Calculator provides a platform to determine the amount of income one may have to forego while prematurely withdrawing the fixed deposit.
FD Premature Withdrawal Penalty
|FD Interest Rates|
|SBI FD Interest Rates||HDFC FD Interest Rates|
|ICICI FD Interest Rates||Axis Bank FD Interest Rates|
|Canara FD Interest Rates||Yes Bank FD Interest Rates|
|Kotak Mahindra FD Interest Rates||Bandhan Bank FD Interest Rates|
|Union Bank of India FD Interest Rates||Indusind Bank FD Interest Rates|
|PNB FD Interest Rates||Bank of Baroda FD Interest Rates|
|IDFC Bank FD Interest Rates||Indian Bank FD Interest Rates|
|RBL Bank FD Interest Rates||UCO Bank FD Interest Rates|
|Karnatka Bank FD Interest Rates||Bank of India FD Interest Rates|
|IDBI Bank FD Interest Rates||Central Bank of India FD Interest Rates|
|Bank of Maharashtra FD Interest Rates||Citi Bank FD Interest Rates|
|Allahabad Bank FD Interest Rates||Indian Overseas Bank FD Interest Rates|
|Andhra Bank FD Interest Rates||Corporation Bank FD Interest Rates|
|DBS Bank FD Interest Rates||Syndicate Bank FD Interest Rates|
|Dena Bank FD Interest Rates||Vijaya Bank FD Interest Rates|
|State Bank of Travancore FD Interest Rates||State Bank of Mysore FD Interest Rates|
|State Bank of Hyderabad FD Interest Rates|
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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