FD Break Rules: How much will be the charge for breaking FD before time, know the rules before investing..

FD Breaking Rules: Depositing money in FD is not a new thing, but many times in life, due to a financial emergency, it has to be broken before it matures (FD premature rules). That is, a situation of premature withdrawal (FD Premature Withdrawal) arises, in such a situation, the bank (Bank News) does not give the customer the full interest amount applicable from the beginning and deducts it.

Banks compensate their benefits to a large extent from the customer, but this only causes loss to the customer. Banks have different rules for premature withdrawal regarding different FDs (FD interest rates). Penalty and charges are collected under these rules. Let us know about them in the news.

How much penalty will have to be paid-

Banks decide different periods of FD (panel on FD break) on their own for their own and customer's benefit. On premature withdrawal of money from FD, the bank does not get the benefit of the full term, so the penalty and interest (penalty on premature FD) is reduced and the customer is compensated for it. That is, the customer does not get the benefit of maturity on breaking the FD.

For this, the bank charges a fine or penalty. This fine (fine on premature FD) is charged from the customer's interest rate. It can be one percent or less or more than that. Banks charge a penalty of 0.5 percent to 1 percent of the interest rate (FD interest rates) from the booked rate i.e. the interest that was fixed at the time of opening the FD account.

SBI charges this much-

The charges levied on breaking FD (FD ke niyam) of every bank are different. According to SBI rules, if the FD is broken before maturity, the customer's interest is deducted by up to 1 percent. After this, a separate penalty is levied on the interest that is generated.

According to the bank's rules, if you withdraw money from an FD of up to Rs 5 lakh before maturity (FD maturity periods), then a penalty of 0.50 percent has to be paid. If an FD of more than 5 lakhs and less than one crore is broken, a penalty of 1 percent is charged on the interest (FD par aj).

This is the effect on interest-

If the FD is broken before maturity (FD ke fayde), the effective interest rate will not be the same as before, which was fixed at the time of opening the account, that is, the benefit of the booked rate (FD booked rates) will not be available. On breaking the FD, the bank does not get the benefit which it gets till maturity, so the bank compensates for this by giving a lower interest rate to the customer at the time of breaking the FD. When you withdraw the money from the FD in between, you will get interest at the card rate i.e. the interest will be decided according to the time for which the money is deposited in the bank (Bank FD rules).

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