Are we charged penalty if we go into the bank and break any FD linked with Savings Plus account?

POSTED BY mediamonkey ON June 21, 2014 5:06 pm ONE COMMENT

By default FDs are automatically created with 1 year duration and linked to Savings Plus account. Are we charged penalty if we withdraw more money from ATM and this FD gets broken (before 1 year)?

Are we charged penalty if we go into the bank and break any FD linked with Savings Plus account? Is tax automatically deducted or we have to pay it ourselves?

Thanks!

One reply on this article “Are we charged penalty if we go into the bank and break any FD linked with Savings Plus account?”

  1. Hemanth Chandra says:

    I think penalty will be there, but you will get more interest than normal savings account…. Please check again with customer care of your bank….

    Tax will be deducted if the total interest on all FDs for the financial year is > 10k

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