Also, the bank doesn’t pay any interest on deposits that are held for less than seven days. However, if the investment exceeds ₹5 lakh, SBI charges you a penalty of 1% on the pre-closure of the account. State Bank of India (SBI): The bank charges you a penalty of 0.50% on premature withdrawal of FDs up to Rs5 lakh.
Here are the rules and penalty charges regarding premature withdrawals of fixed deposits at top public banks, private banks and NBFCs. You can close your FD online by using the mobile app of the bank or NBFC, or via net banking or by visiting the nearest physical branch of the lender concerned. However, some banks do not charge any penalty if the amount withdrawn is put in some other investment option offered by them. The penalty charges typically range from 0.5% to 3% of the interest rate. Premature withdrawal rules: FDs offer the option of premature withdrawal of money but lenders will charge you a penalty for closing the deposit ahead of time.
