can we withdraw money from fixed deposit before maturity?
Yes, you can withdraw money from a fixed deposit before it matures, but it’s not as simple as just taking cash out whenever you feel like it. From my own experience, banks do allow what’s called a “premature withdrawal” of an FD.
The bank will reduce the interest rate you earn. Usually, they’ll give you the rate applicable for the actual period you kept the FD, and then deduct a penalty (often 0.5% to 1%). So, you’ll end up earning less than what you expected.
In short, yes, it’s possible, but you’ll lose a bit of interest in exchange for the liquidity. If you think you might need the money before maturity, a better idea is to choose a shorter FD term or break your investment into smaller FDs so you don’t have to break the whole amount at once.