FD interest calculation when we break the deposit

POSTED BY Irshad ON December 14, 2010 12:31 pm ONE COMMENT

Hi All,

How the FD interest is calculated when we break the deposit in the following conditions, Suppose my tenure is 12 months for 1 Lk ( interest 6%)

1. break on 5th month ( less than 6 months).
2. break on 7th month ( > 6 mnts and < 12 mnths) and with draw from bank
3. break on 7th month ( > 6 mnts and < 12 mnths) and chose new interest (8%)

– penalty charges – 1% (There is some new RBI guideline on this to exempt penalty )

Thanks,

One reply on this article “FD interest calculation when we break the deposit”

  1. amol82 says:

    irshad,

    about penalty charges 1% what i have heard is something like this

    if you break the FD and invest again FD with the same bank(off course with higher FD rates after few months, if any) then the penalty charges will not be applied.
    for example, if you invest 1 lac with 6% interest and after few month rate of interest on FD in the same bank is 7%. in that case if you break previous FD and again invest in FD in the same bank then 1% charges will be waived off.

    please double check with the bank

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