State Bank of India or SBI offers a premature withdrawal facility with its fixed deposit (FD) accounts. Through its premature withdrawal facility, SBI enables its customers to liquidate a fixed deposit before the end of its term. However, the closure of an FD account before maturity attracts certain penalty charges. SBI charges a penalty up to 1 per cent for premature withdrawal of an FD deposit up to Rs. 1 crore, according to the bank’s corporate website – sbi.co.in. Fixed deposits, also known as term deposits (TDs), are fixed income instruments that yield fixed returns over a pre-defined period of lock-in.
Here are key things to know about SBI’s premature withdrawal rules for fixed deposits (FDs):
For premature withdrawal from SBI fixed deposits or FDs up to Rs. 5 lakh, customers are required to pay a penalty of 0.50 per cent across all maturities, according to SBI. For premature withdrawal from SBI fixed deposits above Rs. 5 lakh but below Rs. 1 crore, the bank has fixed the penalty at 1 per cent for all tenors, according to SBI.
|Description||Penalty (All Tenors)|
|Fixed deposits up to Rs. 5 lakh||0.50%|
|“Fixed deposit above Rs. 5 lakh lakh but below Rs. 1 crore”||1%|
No interest is paid on SBI fixed deposits which remain for a period of less than seven days, according to SBI.