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How to Avoid Penalties When Closing an FD Before Maturity
- Location: India
Premature withdrawal of a fixed deposit (FD) can impact your returns due to penalty charges and reduced interest rates. Most banks and NBFCs levy a penalty ranging from 0.5% to 1% on the applicable interest rate. Additionally, break FD before maturity may result in lower earnings, as the interest is recalculated based on the tenure completed.
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