No interest is paid on SBI FDs which remain for a period of less than seven days, according to SBI.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.For premature withdrawal from SBI fixed deposits or FDs up to Rs5 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 Rs1 crore, the bank has fixed the penalty at 1 per cent for all tenors, according to SBI.(Source: sbi.co.in)No interest is paid on SBI fixed deposits which remain for a period of less than seven days, according to SBI.For fixed deposits up to Rs 2 crore, SBI currently pays interest rates to the tune of 4.50-6.40 per cent to the general public over a maturity period of seven days to 10 years.The fixed deposit account which has a lock-in period of five or 10 years offers income tax benefit under Section 80C of the Income Tax Act.
Premature withdrawal from this type of FD accountis not allowed before completion of the lock-in period of five years.Follow TheIndianSubcontinent for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.Subscribe to our YouTubechannel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.