I have some fixed deposits (compounding, reinvestment of interest) with HDFC Bank at lower rates of 7/7.5 percent. These are mostly 2 year FDs or in that time range, Also, HDFC Bank has a premature withdrawal penalty of 1%.
Considering that the rates are now around 9.25% for just 1 year 16 days, would it be more beneficial to prematurely close and renew the FDs with the new rates?
Also, does anyone know of a calculator that can make a “Yes/No” decision like this on FDs? Such a calculator would be very useful to many people.
Thanks,
Ram.