How much interest will I get if I prematurely withdraw the funds, and what is the penalty charged?
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 at 8% p.a. 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, banks may charge a 1% penalty on premature withdrawals. This penalty is deducted only from the interest earned.
Utkarsh SF Bank doesn’t charge any premature withdrawal penalties.