Many times it is seen that in case of sudden need of money, people break their Fixed Deposit (FD). But by doing this you may have to suffer loss. Because if you break FD before maturity, you will not only get less interest but you will also have to pay penalty. Here we are telling you about the disadvantages of breaking FD before maturity and the loan facility available on FD. How much less interest will you get on prematurely breaking FD? If you are breaking the FD before time, then you do not get interest at the rate at which you have made the FD. According to the information given on the SBI site, if you break the FD before time, you will get 1% less interest than the interest you were supposed to get on the FD. For example, suppose you have made an FD of Rs 1 lakh at the rate of 6% for 1 year, but you break it only after 6 months, the bank will pay interest on your money at the rate of 5%, and not at the rate of 6%. . Apart from this, penalty will also have to be paid. How much penalty will have to be paid? According to the rules of the country’s largest bank SBI, if a person makes an FD up to Rs 5 lakh, then he will have to pay a penalty of 0.50% if the FD is broken before it matures. Similarly, on FDs of more than Rs 5 lakh and less than Rs 1 crore, 1% penalty will have to be paid for premature break. Your money is given to you after deducting the interest received on FD by 1% (as mentioned above) and collecting penalty as per the amount of FD. You can take loan against FD, under this you can take loan up to 90% of the value of FD. Suppose the value of your FD is Rs 1 lakh, then you can get a loan of Rs 90 thousand. If you take a loan against FD, you will have to pay 1-2% more interest than the interest you get on fixed deposits. For example, suppose you are getting 4% interest on your FD, then you can get a loan at 5 to 6% interest rate. What will happen if the loan is not repaid? If a person takes a loan against FD and is unable to repay it, then when your FD matures, the bank will deduct the outstanding amount of the loan from it. In such a situation, you will get whatever money is left in the FD after this. Which option will be right? If your FD is worth Rs 1 lakh and you need Rs 50 thousand, then it would be right to take a loan against your FD. Because this will save your savings and your money needs will also be fulfilled. On the other hand, if you need the entire amount of FD, then it would be better to break your FD before time because with this you will get your money after some penalty. 85 to 95% of the money is available as loan against FD.
