can i close RD before maturity in sbi?
Yes, you can close your SBI Recurring Deposit (RD) before maturity, but you won’t get the full expected interest. When you open an RD, the bank promises a fixed interest rate for the full tenure. But if you break it early, SBI will calculate the interest only for the period you actually kept the money in the account, and that too with a penalty of 0.5% to 1.00% charge.
For example:
If your RD was for 3 years at 7% interest, but you close it after 1 year, SBI will pay you interest for 1 year at the rate applicable for that period minus around 0.5% to 1.00% as penalty.
So, you can close your SBI RD but you’ll earn less than planned.