HOW CAN YOU WITHDRAW YOUR PREMATURE FIXED DEPOSIT?

A fixed deposit investment is something that you can hold for a long period and can earn proper earning from your savings. You can hold this saving from 7 days to 10 years all depends on you. 

As fixed Deposit is one of the best ways to save your money and also provides you the extra benefits of good interest rate earning. Now emergency can be of anything if you need early withdrawal of your fixed deposit means withdrawal of premature fixed deposit then this is of two types: 

• With provision for early withdrawal.
• Without the premature withdrawal provision.

In the first type of FD withdrawal, the financial institute lets you withdraw your money but there will be a penalty of some amount which the investor has to pay and in the second type they will give you the money but they will not close your account before the maturity time.

Points to remember before the premature withdrawal 

• Penalties: Investors have to pay some amount of penalty. The amount ranges 0.50% - 1.00% of the interest.
•  Loss of Interest: This is very obvious that there will be a loss of interest if you withdraw your premature FD. As the plan you have made till the maturity of your FD will break in between.
• Financial Growth will come to standstill: Early withdrawal of fixed deposit will give a break to the interest you were getting before which is a kind of loss.

The basic process for premature withdrawal of FD.

First, you have to visit your bank or NBFC or you can withdraw through net banking.