DelhiDesk Indian banks are offering higher interest rates on fixed deposits, making it an attractive investment option for conservative investors. However, it is important to understand the rules on premature withdrawal of the deposit. Banks charge a penalty ranging from 0.5% to 3% for premature withdrawal, depending on the bank and the amount of the deposit. Punjab National Bank’s Sugam Term Deposit scheme allows for partial withdrawals without penalty, in multiples of Rs. 1,000, and the interest rate for the remaining deposit remains the same. The bank offers different interest rates on deposits based on the amount deposited.
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Here is the news bullets sorted by DelhiBreakings.com team.
– Indian banks have increased deposit interest rates, making fixed deposits a good option for conservative investors
– Before investing, it’s important to understand the rules on premature withdrawal
– Premature withdrawal of bank fixed deposits incurs a penalty charge, typically ranging from 0.5% to 3%
– SBI charges a penalty of 0.5% on FDs up to Rs5 lakh, and 1% on investments exceeding 5 lakh
– HDFC Bank charges a penalty of 1% for premature closure of FD accounts
– PNB levies an interest penalty of 1% on premature cancellation or part withdrawal of FDs, except for its Sugam Term Deposit scheme
– The PNB Sugam Term Deposits scheme allows for part withdrawal without penalty, and full withdrawal before maturity incurs no penalty and the contractual interest rate or scheme rate on the contractual date applies
– PNB offers different interest rates depending on the amount bucket of deposit
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