Most of the banks levy a penalty of as much as 1 per cent on breaking a fixed deposit (FD) before maturity. However, select banks and select fixed deposit schemes of these banks do not attract a penalty of one per cent for breaking the deposit early. Investors are advised to take note of these schemes as they would not lose as much as one per cent, in case there is a pre-mature withdrawal.
IDBI Bank Freedom Deposit
Deposits under the scheme do not attract a penalty on premature withdrawal. The Deposits come across tenures of 15 days to 20 years and the interest rate is as high as 9.3 per cent and 9.8 per cent for senior citizens. One can avail overdrafts against the deposit at attractive interest rates.
No penalties across all fixed deposits
Yes Bank is the third largest private sector bank in the country. The fixed deposits of the bank do not attractive a penalty on pre-mature withdrawal. Interest rates offered on the deposits are as high as 9.10 per cent and 9.6 per cent for senior citizens.
The ING FD+ from ING Vysya Bank does not levy a penalty on pre-closure of the fixed deposit. The FD also offers a very attractive rate of interest of 9.25 per cent.
No charges only on NRE Deposits
Axis Bank does not charge a penalty on pre-mature withdrawal of NRE Deposits. However, it's domestic deposits attract a penalty of one per cent.