Home >Money >Personal Finance >SBI fixed deposit (FD): How much money you lose on premature withdrawal
SBI charges 1% for premature withdrawal of an FD above 5 lakh but less than 1 crore. (Mint)
SBI charges 1% for premature withdrawal of an FD above 5 lakh but less than 1 crore. (Mint)

SBI fixed deposit (FD): How much money you lose on premature withdrawal

  • State Bank of India (SBI) charges penalty for premature withdrawal of term deposits
  • FDs with premature withdrawal allows the depositor to close the term deposit even before the maturity period

Fixed deposits (FDs), also known as term deposits can be broadly categorised into two types – FDs with premature withdrawal and FDs without premature withdrawal. So, at the time of parking the money in term deposits, depositors can opt for either of the two. FDs with premature withdrawal allows the depositor to close the term deposit even before the maturity period. However, a certain amount may be required to be paid by the depositor as a penalty to the bank.

SBI penalty charges on premature withdrawals

1) Country's top lender State Bank of India (SBI) charges a penalty of 0.50% for premature withdrawal of an FD upto 5 lakh according to SBI's website.

2) The bank charges 1% for premature withdrawal of an FD above 5 lakh but less than 1 crore.

3) The interest shall be 0.50% or 1% below the rate applicable at the time of deposits for the period deposit has remained with the bank or 0.50% or 1% below the contracted rate, whichever is lower.

4) No interest will be paid on deposits which remain for a period of less than 7 days.

Retail term deposits up to 5 lakh- 0.50%

Retail term deposits above 5 lakh but below 1 crore-1%

SBI latest FD interest rates

SBI offers FDs ranging from 7 days to 10 years. SBI FDs between 7 days to 45 days, 46 days to 179 days gives 2.9% and 3.9% interest respectively. FDs of 180 days to less than one year will fetch 4.4%. Deposits with maturity between 1 year and up to 3 years will give 5.1%. FDs with tenor 3 years to less than 5 years will give an interest rate of 5.3% and those maturing in 5 years and up to 10 years will give 5.4%.

7 days to 45 days - 2.9%

46 days to 179 days - 3.9%

180 days to 210 days - 4.4%

211 days to less than 1 year - 4.4%

1 year to less than 2 years - 5.1%

2 years to less than 3 years - 5.1%

3 years to less than 5 years - 5.3%

5 years and up to 10 years - 5.4%

SBI online fixed deposit (FD) facility

Using the online facility, SBI customers can easily open an FD sitting anywhere. SBI online FD is very convenient as it is very easy to pay for the term deposit and this can be done directly through net banking. Once you open an FD online, you can renew and close the deposit online instantly. So, there is no need to go to the bank for any of these purposes.

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