Everyone needs to save. Only the savings amount comes in handy when needed. Many people invest in FD for saving, but they are not aware of the rules related to saving. Many times people want to break the FD prematurely. But during this time, they do not know whether they will have to pay any kind of charge or not. Know the rules related to FD in this article.
Will there be a charge for breaking FD?
- According to the Reserve Bank of India, you can withdraw up to Rs 1 crore from the FD before the maturity date. Till some time ago, this rule was applicable on FDs up to Rs 15 lakh instead of Rs 1 crore.
- For example, you made an FD of Rs 20 lakh for 5 years. So the bank may talk about imposing a penalty of 1% on you if you withdraw the amount within 2 years, but in reality, it is wrong to do so. You will have to pay the interest till the day of withdrawal of money to the bank without any deduction.
What are the rules in the post office?
According to post office rules, a 5-year FD cannot be withdrawn before completion of 4 years. Apart from this, if you are withdrawing 5 years FD after completion of 4 years and before 5 years, then you will get only savings account interest. This means that you will have to pay a penalty for breaking your post office FD.
Keep this in mind before investing in FD
There are many similar rules related to FD. You have to know all the rules before investing in FD at any bank or post office. Also, focus on interest rates. By doing this you will get maximum returns in less time.
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