2 min read.Updated: 22 Jul 2020, 10:49 AM IST Edited By Sangeeta Ojha
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 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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