Can We Break Post Office FD?

The Post Office time deposit scheme, which can be held from a period of 1 year to 5 years, can be withdrawn before the maturity period but it will be subject to a penalty.

This is especially in the case of deposits that come with the lock-in period, in such case a premature withdrawal can be refused.

Can FD be broken in any branch?

Yes you can open FD/RD in any branch of SBI regardless whether it is home branch or not, but the only catch here is you can liquidate it only in the branch where you opened it. Or through another branch if you forward the letter through the branch of your present choice to FD opening branch.

How many years FD will double in post office?

Time deposit accounts have a tenure ranging from 1 year to 5 years. Depositors can open any number of FD accounts in any of the post offices. Minors aged 10 years or more can open and manage these accounts as well. Minors have to apply to get the account converted in their name after they become 18 years old.

Is fixed deposit safe in post office?

So, Post Office deposits are safer than FDs, although RBI and the government will take all possible measures to prevent a PSU bank from getting bankrupt. So, for FDs or time deposits of less than 5 years, there will be no tax deductions. Tax-free interests: Interest earned on PPF and SSY are only tax free.

What happens if you break FD before maturity?

Withdrawing an FD before maturity is known as breaking an FD. When you break the FD, you get a lower rate of interest and also pay a penalty for the premature withdrawal. If you decide to break an FD at 10 months, the interest earned on the FD will reduce by 1%.

What happens to FD after maturity?

After maturity: A fixed deposits get renewed automatically if not withdrawn on maturity or the interest rate of savings account is paid for period after maturity. Second, the depositor can indicate in the form that the amount be renewed after maturity. The longest tenor for an FD is 10 years.

What happens if FD is broken?

To liquidate an FD, most lenders will charge you a premature withdrawal penalty. Usually, the penalty for breaking an FD is 0.5-1% and it is applicable for the period the deposit has remained with the bank. You have an FD of Rs 1 lakh for two years that earns 9.25% per annum and decide to break it after six months.

Can I double my money in 5 years?

This is the number of years it will take for your money to double. For example, if your money is earning an 8 percent interest rate, you’ll double your money in 9 years (72 divided by 8 equals 9). Or, if your money is earning a 5 percent interest rate, you’ll double it in 14.4 years (72 divided by 5 equals 14.4).

What is the FD rate in post office?

Deposits qualify for tax rebate under Sec. 80C of IT Act. The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.

Interest rates From 01.07.2019.

5yr.A/c7.7​ %

Which bank is best for FD 2019?

Compare Fixed Deposit Interest Rates 2019 in India

BankFD Rate of InterestSenior Citizen FD Rates
HDFC7.50% – 7.50%7.55% – 7.55%
PNB Housing Finance8.25% – 8.45%8.50% – 8.70%
Allahabad Bank5.00% – 6.75%
Andhra Bank4.00% – 6.80%% – 7.30%

41 more rows