How much interest will I get if I prematurely withdraw the funds, and what is the bank penalty charged?
A great question!
The benefit of investing in FDs is that you never make negative returns, i.e., you will never make a loss on your investment.
If you prematurely withdraw your FD, then your principal is returned to you safely.
The interest calculation is explained with an example below:
If you booked a 2-year FD of ₹1 Lakh at a rate of 8% but withdrew after 1 year, the interest rate applied will be the current rate for a 1-year FD at the time of withdrawal, which is usually lower than the original rate. Additionally, a bank penalty of 1% will be applied to the applicable interest rate due to premature withdrawal, reducing the actual interest rate.
Utkarsh SF Bank doesn’t charge any premature withdrawal penalties on principal amount
To date, customers have withdrawn more than 90 crores worth of FDs seamlessly through the Stable Money app.