If I have booked an FD with a monthly or quarterly payout and I withdraw prematurely, what will the deductions be?
If you have booked an FD with a monthly or quarterly payout and decide to withdraw prematurely, the applicable interest rate will be determined based on the tenure for which the FD was held. The bank will then calculate the interest already paid out and determine if there is any excess or deficit. Any excess interest paid will be deducted from the principal amount, and any deficit will be adjusted accordingly.