It could be from any fixed-period investment, including deposits, endowment insurance policies, post office savings etc. Personal circumstances or unanticipated exigencies may force an investor to redeem or make an early withdrawal from his fixed-period investment. The term Premature Withdrawal in any fixed-period investment refers to the removal of the investment before the maturity date. Each bank has its own terms and conditions for offering fixed deposits to the members of the public. The interest rate offered by different banks and financial institutions varies according to the tenor as well as the credit rating of the bank. Fixed deposits range in tenor from 7 days and go all the way up to 10 years. Fixed deposits, also known as term deposits, are suitable for both working professionals and retired senior citizens. When a saver invests in a fixed deposit, they earn a guaranteed income over a fixed term of the investment. Fixed deposits offer them a diversification route for investing their savings. Most savers like to earn some income passively over and above their regular income flow. Premature Withdrawal of Fixed Deposit FAQs How to Calculate Penalty on Premature Withdrawal of Fixed Deposit?Īlternatives to Premature Withdrawal of Fixed Deposit What are the Penalty Charges for Premature Withdrawal of FD? What is the Premature Withdrawal of a Fixed Deposit?
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