Q. Can I withdraw money from fixed deposit before maturity?
Yes, you can withdraw money from a fixed deposit before its maturity date. This is known as a premature withdrawal. However, it typically comes with certain terms and conditions, including a penalty or a reduction in the interest rate earned. The exact rules and penalties may vary depending on the bank or financial institution where you hold the fixed deposit.
Q. What is Premature Withdrawal of Fixed Deposits?
Premature withdrawal of fixed deposits refers to the process of withdrawing funds from a fixed deposit account before the predetermined maturity date. It may be necessary for various reasons, such as financial emergencies or changes in investment plans. When you make a premature withdrawal, you usually receive the principal amount along with the interest earned up to that point, minus any applicable penalties.
Q. What happens to FD after 10 years?
When a fixed deposit matures after 10 years, you have several options:
- 1. You can choose to withdraw the entire maturity amount along with the interest earned.
- 2. You may opt to renew the FD for another fixed term if your bank allows it.
- 3. Some banks also offer the option to convert the matured FD into a different type of investment, such as a recurring deposit or a savings account.
- Turn on screen reader support
Q. What happens when you withdraw from your fixed deposite prematurely
When you withdraw from your fixed deposit before its maturity date, the following typically occurs:
- 1. You will receive the principal amount along with the interest earned up to the date of withdrawal.
- 2. However, the interest rate on the premature withdrawal amount may be lower than the originally contracted rate, and there may be a penalty or reduction in the interest earned.
- 3. The exact penalties and rules for premature withdrawal vary among banks and financial institutions, so it’s essential to check the terms and conditions of your specific fixed deposit.