Bajaj Finance Best Investment Plans

What is the penalty for premature withdrawal of fixed deposit?

What is the penalty for premature withdrawal of fixed deposit?

Investing in fixed deposits for a specific tenor can help you gain from fixed and steady interest rates. However, unforeseen circumstances may warrant urgent financing, which is why you may want to liquidate your savings before the end of your investment tenor. Often, breaking your FDs prematurely can adversely impact your investments.

When you invest in Bajaj Finance Fixed Deposit, there is a fixed lock-in period of 3 months. While there is no penalty on withdrawing money prematurely, you may incur losses in terms of earned interest. It is hence, advisable to avoid breaking your FD before maturity. Instead, you can take a loan against FD, and get the desired cash flow without losing out on the interest.