All about per-withdrawal of Fixed Deposit



No doubt, a fixed deposit is considered to be the most sorted after the form of investment.

There are various investment options that you can look for offered by best fd rates.

However, fd can be classified into two categories that are as follow :



Locking FD: These FD's have a locking period, and we cannot withdraw the money before the period ends


Premature FD: the investor is allowed yo to withdraw and take out the money in between the tenure

Holding both the options open is good. Every single investor can choose as per their flexibility.

In some cases, there is a penalty, yet in some cases, there are no charges on withdrawal. It varies from bank to bank.

For the people who own a Corporate Fixed Deposit :

1)Withdraw money before three months would not yield any interest

2)Withdrawing money post six months will generate interest rate minus 2 % the actual amount

3)Keep in mind the following points at the time of noting a premature withdrawal

4)Reduced Interest rate: In case of withdrawal, the interest rate will definitely be lowered.

5)Thereby, a new interest rate will be generated that will cover the penalty charges along
with the initial interest rate. A fee of 1 % is levied. It can be more. It depends on the bank to bank.


Other ways for quick access to cash against fixed deposit

  1. Loan against fixed deposit : A loan can be taken against fd on 70 % of the principal amount. The fd can act as collateral in such a form.
  2. A sweep in account: Having a combination of both fixed deposit and savings can be considered as a good option.

Continue Reading : Know all about Pre-maturing Fixed Deposit Schemes

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