Bank FDs are counted among the secure and are that being said India's most prominent savings or investment vehicles. Bank FDs are suitable for tenures ranging from 7 days to 10 years that can be selected by any individual for deposits. In the occurrence of any unexpected circumstances, depositors can prefer for convenient premature withdrawal from any fixed deposits. Fixed deposits can be divided mainly into two types: premature withdrawal and without premature withdrawal respectively, but in case of premature withdrawal a penalty will be charged to the depositor by the bank. In case you are going to make a premature withdrawal from your FD account, the nation's largest lender State Bank of India specifically specifies the penalty charges and few guidelines on all its fixed deposits that you must need to consider.
- Investors are required to pay a penalty of 0.50 per cent over all maturities against premature withdrawal from SBI FDs up to Rs.5 lakh.
- The bank has set the penalty for all tenures at 1 per cent for premature withdrawal from SBI fixed deposits above Rs.5 lakh but below Rs.1 crore respectively.
- No interest will be settled on deposits which persist for a span of less than 7 days.
With force from 10 September, SBI FDs will now deliver 2.9 percent return between 7 days and 45 days. Term deposits will have 3.9 percent between 46 days and 179 days. FDs will gain 4.4 percent from 180 days to less than one year. For a maturity period of 1 year and up to less than 2 years the interest as of now is 4.9% instead of 5.1% earlier. 5.1 percent will be offered by FDs maturing in 2 years to less than 3 years. Whereas 5.4 percent will be offered by term deposits maturing in 5 years and up to 10 years and 5.3 percent for maturity period between 3 years to less than 5 years.