ICICI bank: For deposits of less than ₹5 crore, the bank charges a 0.5% penalty if you were to prematurely close the account in less than a year and and 1% if the amount is withdrawn after a year. Further, in case of premature closure of the FD account (including sweep-in and partial), the bank charges a penalty of 1%. HDFC Bank: The interest rate applicable for premature closure of FDs will be lower than the original tenure rate or the base rate for the tenure that the investor has deposited money with the bank. In such a case, the interest rate payable would be the contractual rate minus 1%. Punjab National Bank (PNB): The bank levies an interest penalty of 1% at the time of premature cancellation or part withdrawal of FDs for all tenors.

Also, the bank doesn’t pay any interest on deposits that are held for less than seven days. However, if the investment exceeds ₹5 lakh, SBI charges you a penalty of 1% on the pre-closure of the account.

State Bank of India (SBI): The bank charges you a penalty of 0.50% on premature withdrawal of FDs up to Rs5 lakh. Here are the rules and penalty charges regarding premature withdrawals of fixed deposits at top public banks, private banks and NBFCs. You can close your FD online by using the mobile app of the bank or NBFC, or via net banking or by visiting the nearest physical branch of the lender concerned.

However, some banks do not charge any penalty if the amount withdrawn is put in some other investment option offered by them. The penalty charges typically range from 0.5% to 3% of the interest rate. Premature withdrawal rules: FDs offer the option of premature withdrawal of money but lenders will charge you a penalty for closing the deposit ahead of time.

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