What is premature withdrawal of a fixed deposit?
According to the IndusInd bank website, “A fixed deposit offers an investor a fixed rate of interest on a lump sum amount deposited with a bank for a specific period and can be determined by using a fixed deposit return calculator. Premature fixed deposit withdrawal means the investor withdraws the fixed deposit before the maturity date.”
Penalty
Fixed deposit withdrawals made early usually result in penalties. Penalty charges vary from bank to bank and usually entail a reduction in interest rate. The penalty of premature withdrawal of fixed deposit may be between 0.5% and 1%.FD interest rate up to 8.05%: These three banks have revised their fixed deposit interest rates in October 2024
FD interest rate
Fixed deposit interest rates FD interest rates are riding high on the back of multiple rate hikes by the RBI in 2022. Interest rates also vary depending on the FD Tenure, invested amount, bank, repo rate fluctuations.
Bank fixed deposit rates
Here are fixed deposit interest rates of public, private, small finance banks, and foreign banks.
| Highest slab | Tenure | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | |
| SMALL FINANCE BANKS | |||||
| AU Small Finance Bank | 8 | 18 months | 7.25 | 7.5 | 7.25 |
| Equitas Small Finance Bank | 8.25 | 444 days | 8.1 | 8 | 7.25 |
| ESAF Small Finance Bank | 8.25 | 2 years to less than 3 years | 6 | 6.75 | 6.25 |
| Jana Small Finance Bank | 8.25 | 365 days to 1095 days | 8.25 | 8.25 | 7.25 |
| NorthEast Small Finance Bank | 9 | 546 days to 1111 days | 7 | 9 | 6.25 |
| Suryoday Small Finance Bank | 8.65 | 2 years 2 days | 6.85 | 8.6 | 8.25 |
| Ujjivan Small Finance Bank | 8.25 | 12 months | 8.25 | 7.2 | 7.2 |
| Unity Small Finance Bank | 9 | 1001 days | 7.85 | 8.15 | 8.15 |
| Utkarsh Small Finance Bank | 8.5 | 2 years to 3 years; 1500 days | 8 | 8.5 | 7.75 |
| PRIVATE SECTOR BANKS | |||||
| Axis Bank | 7.25 | 15 months to less than 2 years | 6.7 | 7.1 | 7 |
| Bandhan Bank | 8.05 | 1 year | 8.05 | 7.25 | 5.85 |
| City Union Bank | 7.5 | 333 days | 7 | 6.5 | 6.25 |
| CSB Bank | 7.75 | 401 days | 5 | 5.75 | 5.75 |
| DBS Bank | 7.5 | 376 days to 540 days | 7 | 6.5 | 6.5 |
| DCB Bank | 8.05 | 19 months to 20 months | 7.1 | 7.55 | 7.4 |
| Federal Bank | 7.4 | 50 months ; 777 days | 6.8 | 7 | 6.6 |
| HDFC Bank | 7.4 | 4 Year 7 Months (55 months) | 6.6 | 7 | 7 |
| ICICI Bank | 7.25 | 15 months to 2 years | 6.7 | 7 | 7 |
| IDFC First Bank | 7.75 | 400 days | 6.5 | 7 | 6.75 |
| IndusInd Bank | 7.75 | 1 year to 2 years | 7.75 | 7.25 | 7.25 |
| Jammu & Kashmir Bank | 7 | 1 year to less than 3 years | 7 | 6.75 | 6.5 |
| Karur Vysya Bank | 7.6 | 760 days – Special Deposit | 7 | 7 | 7 |
| Karnataka Bank | 7.5 | 375 days | 7.35 | 6.5 | 6.5 |
| Kotak Mahindra Bank | 7.4 | 390 days to less than 23 months | 7.1 | 7 | 6.2 |
| RBL Bank | 8.1 | 500 days | 7.5 | 7.5 | 7.1 |
| SBM Bank India | 8.25 | Above 18 months to less than 2 years 3 days | 7.05 | 7.3 | 7.75 |
| South Indian Bank | 7.25 | 400 Days | 6.7 | 6.7 | 6 |
| Tamilnad Mercantile Bank | 7.5 | 400 days | 7 | 6.5 | 6.5 |
| YES Bank | 8 | 18 months | 7.25 | 7.25 | 7.25 |
| PUBLIC SECTOR BANKS | |||||
| Bank of Baroda | 7.15 | Above 2 years to 3 years | 6.85 | 7.15 | 6.5 |
| Bank of India | 7.3 | 400 days | 6.8 | 6.5 | 6 |
| Bank of Maharashtra | 7.25 | 777 days | 6.75 | 6.5 | 6.5 |
| Canara Bank | 7.25 | 444 days | 6.85 | 6.8 | 6.7 |
| Central Bank of India | 7.45 | 444 days | 6.85 | 6.75 | 6.5 |
| Indian Bank | 7.3 | 400 days – IND SUPER | 6.1 | 6.25 | 6.25 |
| Indian Overseas Bank | 7.3 | 444 days | 7.1 | 6.5 | 6.5 |
| Punjab National Bank | 7.25 | 400 days | 6.8 | 7 | 6.5 |
| Punjab & Sind Bank | 7.3 | 666 days | 6.3 | 6 | 6 |
| State Bank of India | 7.25 | 444 days – Amrit Vrishti | 6.8 | 6.75 | 6.5 |
| Union Bank of India | 7.4 | 333 days | 6.8 | 6.7 | 6.5 |
| FOREIGN BANKS | |||||
| Deutsche Bank | 8 | Above 1 year to 3 years | 7 | 8 | 7.5 |
| HSBC Bank | 7.5 | 601 to 699 days | 4 | 7 | 6 |
| Standard Chartered Bank | 7.5 | 1 year to 375 days | 7.5 | 7.1 | 6.75 |
| Source: Paisabazaar.com | |||||
| Interest rates as of 8th October 2024 |
