And premature FD withdrawal is withdrawing your deposit before the original maturity of deposit.įDs have tenures ranging from as low as seven days up to 10 years.
In this article, we delve deeper into the intricacies of FD premature withdrawal, exploring the implications and processes surrounding premature FD closure and providing insights to guide investors through potential premature closure of FD scenarios.Īlso Read: Understanding Overdraft (OD) against FD Premature Withdrawal of a Fixed Deposit AccountĪs mentioned above, FDs come with a fixed lock-in period. For investors needing to access funds in emergencies, options for premature withdrawal are available online or at bank branches. However, one notable drawback of FDs is the lock-in period, affecting liquidity and often incurring penalties for premature FD closure. Fixed Deposits (FDs) are a preferred investment choice for those seeking minimal risk and steady income, offering better interest rates than savings accounts.
