SBI FD Premature Withdrawal Penalty Calculator

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.

Returns as high
as 7.1%^##

Includes life cover

Completely Tax free^{^}

We are rated⁺⁺

9.7 Crore

Registered Consumer

51

Insurance Partners

4.9 Crore

Policies Sold

In-built life cover

Get Guaranteed returns upto 7.1%* With Life Cover

Your Name

+91

Mobile Number

View Plans

Your personal information is secure with us

By clicking on ''View Plans'' you, agreed to our Privacy Policy and Terms of use Tax benefit is subject to changes in tax laws

Get Updates on WhatsApp

We are rated⁺⁺

9.7 Crore

Registered Consumer

51

Insurance Partners

4.9 Crore

Policies Sold

An Overview- SBI FD

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.

Information About

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.1% ^(TAX-FREE)

Returns After Tax

7.1%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

No

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

No

Life Cover

No

Tax on Profit

Taxable

Risk

High Risk

VIEW PLANS

*For annual premium upto ₹5 Lacs

How Does SBI FD Premature Withdrawal Penalty Calculator Work?

The calculator depicts the following penalty calculations:

For Term Deposit up to Rs 5 lakh, the premature withdrawal penalty charged will be 0.50% (all tenures).
For Term Deposits above Rs 5 lakh, the applicable penalty will be 1% (all tenures).

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:

The contracted rate; or
The rate applicable at the time of fixed deposit for the tenure the fixed deposit remained with SBI, whichever is lower.

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.

Advantages:

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:

It determines the outcome with reasonable accuracy.
It helps to save time.
It is easily available online.
It helps in comparing various options.

Check out our other calculators: SIP Calculator

How Can it Help?

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 Premature Withdrawal Penalty Calculator

HDFC FD Premature Withdrawal Penalty Calculator

Application for Withdrawal of Fixed Deposit

ICICI FD Premature Withdrawal Penalty Calculator

Tax Saver FD Premature Withdrawal

Axis Bank FD Premature Withdrawal

Three Smart Approaches for Avoiding Penalty on Premature Withdrawal on FD

Check Out the SBI FD Withdrawal Rates and Other Details Here

FAQs

How does the SBI FD Premature Withdrawal Penalty Calculator help in emergency planning?

Once one determines the loss of interest and the amount of penalty payable, one may estimate the amount due on premature withdrawal of a fixed deposit in an emergency.
Is the SBI FD Premature Withdrawal Penalty Calculator free to use?

Yes, the SBI FD Premature Withdrawal Penalty Calculator is free to use.
Is the use of the SBI FD Premature Withdrawal Penalty Calculator time-consuming?

The calculator takes as much time as one would take to input the various parameters viz. principal amount, date of deposit and original tenure.
What is the income tax implication factored in by the SBI FD Premature Withdrawal Penalty Calculator?

Since income tax payable on interest on fixed deposit differs from person to person, the calculator does not take into account income tax implications while calculating interest. The estimated amount on premature withdrawal is indicative and is subject to TDS deduction.
Will the amount determined using the SBI FD Premature Withdrawal Penalty Calculator vary?

The projected amount as depicted in the calculator may vary in case the actual date of premature withdrawal varies.

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