Sbi Premature Fd Closure Charges

SBI, one of the leading banks in India, offers fixed deposit (FD) accounts to its customers. However, there are instances when individuals may need to prematurely close their FD before its maturity date. In such cases, SBI imposes certain charges for this early closure. This article aims to provide information on the premature FD closure charges levied by SBI and shed light on the factors that determine these charges.

SBI FD Premature Withdrawal Penalty Calculation Process

The penalty calculations are shown by the calculator.

The premature withdrawal charges for Term Deposits up to Rs 5 lakh will be 0.50% regardless of the tenure. For Term Deposits above Rs 5 lakh, the penalty charged will be 1% irrespective of the tenure.

Initially, there is no interest given on Deposits that are held for less than 7 days. Additionally, the interest rate earned will be either 0.50% or 1% lower than the standard rate.

The interest rate for premature closure of an SBI fixed deposit will be calculated based on either the contracted rate or the rate applicable at the time of opening the fixed deposit, whichever is lower.

For example, if Rs. 1 crore fixed deposit is opened with SBI for 2 years at 5.10% p.a. and the investor wishes to withdraw it after 1 year prematurely. Then, the penalty payable shall be @1%. Also, the revised interest rate payable on the fixed deposit shall be 4.00% p.a. (5.00% – 1.00%).

Withdrawing a fixed deposit before its maturity can result in penalties and potentially lower interest rates. It is crucial for investors to carefully review the terms and conditions regarding premature withdrawal set by the bank when they initially open the fixed deposit.

Penalty for Early Fixed Deposit Withdrawal in SBI: Know the Consequences

The SBI FD Premature Withdrawal Penalty Calculator is a tool that helps you understand how much penalty you will have to pay if you decide to withdraw your fixed deposit (FD) before its maturity date. The calculator shows the penalty calculations based on the amount of your FD and the tenure.

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If your FD is up to Rs 5 lakh, regardless of the duration for which it was opened, the premature withdrawal penalty charged by SBI will be 0.50%. This means that if you decide to withdraw your FD early, you will have to pay a penalty equivalent to 0.50% of the total amount in your FD.

On the other hand, if your FD is above Rs 5 lakh, again irrespective of its tenure, SBI will charge a higher penalty rate of 1%. So if you choose to prematurely close an FD with an amount exceeding Rs 5 lakh, then you will need to pay a penalty equaling 1% of the total value in your account.


The main objective of utilizing the SBI FD Premature Withdrawal Penalty Calculator is to assess, with just a click, the financial implications of withdrawing a fixed deposit investment before its intended maturity date.

It eliminates any cumbersome, manual, error-prone calculation. Some of the critical advantages of utilising the SBI FD Premature Withdrawal Penalty Calculator are:

Are there any fees for closing a fixed deposit before maturity?

Henceforth when withdrawing your FD prematurely under these circumstances; please keep in mind that there will be additional charges imposed by your bank as a result of breaking the agreed-upon terms and conditions regarding maturity dates for fixed deposits.

It is always advisable not to withdraw your FD before its maturity unless absolutely necessary since doing so can lead t

How Can it Help?

While interest rates on bank FDs are subject to changes from time to time, depending on the prevalent interest rate scenario, fixed deposits already contracted by deposit holders remain constant for the tenure of the deposit. If, in any event, the deposit holder chooses to redeem the deposit before the date of maturity, a penalty will be charged, which depends on the policy of the bank.

The SBI FD Premature Withdrawal Penalty Calculator is an online tool that provides assistance to investors in estimating the penalty amount they would need to pay if they choose to withdraw their fixed deposit before its maturity date. This calculator helps investors determine the applicable penalty for premature withdrawal of their fixed deposit.

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Furthermore, the SBI FD Premature Withdrawal Penalty Calculator offers a tool to calculate the potential loss of earnings when withdrawing a fixed deposit before its maturity date.

Calculating penalty for early withdrawal of fixed deposit

– Premature withdrawal of an SBI fixed deposit attracts penalties.

– The penalty amount ranges from 0.50% – 1.00% of earned interest.

– Knowing about these fees helps in making informed decisions regarding early withdrawals.

– Consider various factors like potential loss versus alternative investment options and immediate financial requirements before closing an FD prematurely

Penalty for closing SBI mod early

For deposit accounts up to Rs. 5.00 lakhs, the penalty for premature withdrawal is 0.50% of the total amount deposited for all tenures. This means that if you decide to withdraw your funds before the agreed-upon maturity period, you will be charged a fee equivalent to 0.50% of your initial deposit.

P.S.: Please keep in mind that this information applies specifically to State Bank of India (SBI) and may vary for other banks or financial institutions in India. It is advisable to consult with your respective bank regarding their specific policies on premature FD closure charges.

Should one close an FD before it matures?

The premature closure charges for an FD in SBI (State Bank of India) vary based on the terms and conditions set by the bank. Generally, there is a penalty imposed which results in a reduction of the interest rate offered on the FD. The penalty amount can range from 0.5% to 2%, depending on the specific bank or financial institution where you hold your FD.

Fee for breaking fixed deposit

An early withdrawal fee, also known as a penalty fee, is a fixed amount of money that you have to pay if you want to withdraw your money from a fixed deposit (FD) account before the agreed-upon maturity date. This fee is usually around $30 and serves as compensation for the bank since they expected your funds to be locked in for a specific period.

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1. Early withdrawal fee: A fixed cost charged by banks when withdrawing money from an FD account before its maturity date.

2. Prepayment adjustment/Interest rate reduction: A charge based on how much time has passed since opening an FD account; higher reductions apply if closing it early.

3. These charges are meant to compensate banks for potential losses incurred due to premature withdrawals and encourage customers to keep their deposits until maturity

What is the consequence of withdrawing 20000 early?

Withdrawing funds from a 401(k) or 403(b) account before reaching the age of 59 ½ often leads to facing a penalty of 10%. For instance, if you decide to take out $20,000 prematurely, you will end up paying an additional $2000 as a penalty. It is crucial to understand that time plays a significant role in maximizing your savings. By withdrawing money from your retirement fund early, you are essentially depriving your money of the opportunity to earn valuable interest over time.

P.S. Remember that dipping into your future savings can have long-term consequences on your financial well-being. Instead of resorting to premature withdrawals, it is advisable to explore other options and strategies for meeting immediate financial needs without compromising the growth potential of your retirement funds.

आपके जीवन के पांचतंत्र में से एक है – “समय पैसों का सर्वोत्तम मित्र है”. लेकिन अपनी भविष्य की बचत से पैसों का उल्लेखनहारि करके, आप मुल्यवान् सुvidhaon (interest) कमाने ka avsar apne paise ko haath se nikal rahe hain.

P.S. Yaad rakhein ki bhavishya ki bachat se paise nikalna apki arthik sthirata (financial well-being) par lambe samay tak prabhav daal sakta hai. Pehle hi nahi utaarne ke bajaye, turant jaruratmandiyo ko pura karne ke liye dusre vikalpon aur stratijiyon ka istemal karna uchit rahega jisse retirement funds ka vikaas bina kisi nuksaan ke ho sake.

Calculating the early withdrawal penalty

1. Determine your daily or monthly interest earnings.

2. Calculate the number of days or months remaining until maturity.

3. Multiply your interest earnings by the number of days or months forfeited.

4. This result represents the premature FD closure charges.